Breaking Down BayCom Corp (BCML) Financial Health: Key Insights for Investors

You've seen the headlines, and honestly, the third quarter 2025 numbers for BayCom Corp (BCML) are a mixed bag that demands a closer look. The direct takeaway is a profit squeeze: net income fell to $5.0 million, a sharp 21.3% drop from the previous quarter, and the annualized net interest margin (NIM) slipped to 3.72%. But here's the quick math on the risk: the real headwind is the provision for credit losses, which shot up to $3.0 million in Q3 2025, a massive increase from the prior quarter, signaling management's heightened caution on loan quality. Still, the balance sheet remains a rock, with total assets holding steady at $2.6 billion and the loan portfolio at a solid $2.0 billion. That stability is defintely the foundation, but the rising credit loss allowance of $20.8 million means you need to understand where the pressure points are and what actions to take next.

Revenue Analysis

You're looking at BayCom Corp (BCML) because you want to know if their revenue engine is sputtering or just shifting gears, and honestly, it's a bit of both right now. The top-line trailing twelve months (TTM) revenue, which captures the most recent full year of activity up to September 30, 2025, sits at $94.90 million, marking a slight year-over-year decline of -1.22%. This dip is a near-term reality, but analyst forecasts project a return to growth with an expected annual revenue increase of 6.5%, so let's dig into the components.

BayCom Corp, as the holding company for United Business Bank, primarily generates revenue from two core banking activities: what they earn on loans and investments (Interest Income) and what they earn from fees and services (Noninterest Income). For the third quarter of 2025 (Q3 2025), the total revenue was approximately $37.20 million (Total Interest and Dividend Income plus Total Noninterest Income). This breakdown is crucial for understanding the quality and stability of their earnings.

The vast majority of BayCom Corp's revenue comes from its lending activities, which is typical for a regional bank. Here's the quick math on the most recent quarter's split:

• Total Interest and Dividend Income: $34.95 million (Q3 2025)
• Total Noninterest Income: $2.25 million (Q3 2025)

The core business, Net Interest Income (NII)-the difference between interest earned on assets and interest paid on liabilities-is showing a healthy trend, increasing to $23.41 million in Q3 2025 from $22.87 million in the same quarter of 2024. That's a defintely positive sign for their core lending margin.

Shifting Revenue Dynamics: Near-Term Headwinds

When you look closer at the Q3 2025 numbers, you see a clear trade-off. The increase in Total Interest and Dividend Income is driven directly by higher interest income from loans, which is what you want to see in a rising rate environment. But the Noninterest Income segment is where the near-term risk lies, dropping from $2.75 million in Q3 2024 to $2.25 million in Q3 2025. This $500,000 decrease is primarily due to lower gains on equity securities, a volatile revenue source that shouldn't be relied upon for consistent growth.

The core business is performing, but the non-core revenue is creating a drag. Here's a look at the quarterly changes:

To be fair, the decline in TTM revenue is modest, and the underlying loan income growth suggests operational strength. The key is whether they can stabilize Noninterest Income while capitalizing on the higher interest rate environment. This is a classic bank story: core lending is strong, but capital markets activity is softer. For a deeper dive into the valuation and strategic frameworks, read the full post: Breaking Down BayCom Corp (BCML) Financial Health: Key Insights for Investors.

Next step: Finance needs to model NII sensitivity to a 50 basis point rate change by the end of the week.

Profitability Metrics

You want to know if BayCom Corp (BCML) is making money efficiently, and the quick answer is yes, but the trend is a bit choppy. The core challenge for BCML in 2025 is the pressure on its Net Interest Margin (NIM) and the rising cost of credit, which is eating into net income (net profit). You have to look past the top-line revenue growth to see where the profit is actually landing.

In the third quarter of 2025, BayCom Corp reported a net income (net profit) of $5.0 million, which translates to a quarterly net profit margin of about 19.53%. That's a drop from the second quarter of 2025, which saw net income of $6.4 million, a decline of 21.3%. This near-term trend is the key risk to watch.

Here's the quick math on profitability for Q3 2025, using the bank-standard metrics:

Margin Trends and Industry Comparison

BayCom Corp's primary profitability engine is its Net Interest Margin (NIM), which is the difference between the interest income from loans and the interest expense paid on deposits and borrowings. The annualized NIM of 3.72% in Q3 2025 is a concern because it continues to compress, down from 3.77% in the prior quarter. The decline reflects higher funding costs, especially on money market and time deposits, rising faster than the yield on their interest-earning assets.

When you compare this to the industry, the picture gets clearer. The average NIM for regional banks is cited at around 4.1%, so BayCom Corp is trailing its peers a bit. Also, the annualized Return on Average Assets (ROAA), a standard measure of net profit efficiency for banks, was only 0.75% in Q3 2025. That's significantly below the broader FDIC-insured banking industry's aggregate ROAA of 1.16% reported in Q1 2025. That gap defintely shows a need for better asset utilization.

Operational Efficiency and Cost Management

The company's operational efficiency is a mixed bag, but it shows management is paying attention to costs. We measure this using the Efficiency Ratio, which is noninterest expense as a percentage of net operating revenue (Net Interest Income plus Noninterest Income). The lower the number, the better the efficiency.

• BayCom Corp's Q3 2025 Efficiency Ratio: 62.16%.
• Industry Average Efficiency Ratio (Q1 2025): 56.2%.

BayCom Corp's ratio is higher than the industry average, meaning it costs the bank more to generate a dollar of revenue than its peers. However, total noninterest expense was $15.95 million in Q3 2025, which was actually slightly lower than the same period in 2024. That small decrease suggests effective cost management is in place, but it's not enough to fully offset the pressure on the NIM and the spike in credit loss provisions.

The biggest drag on net income in 2025 has been the provision for credit losses, which jumped to nearly $3.0 million in Q3 2025, up from just $1.2 million a year ago. This is a strategic, albeit costly, move to increase the allowance for credit losses to 1.02% of total loans. That's a realist's move to prepare for potential loan issues, but it cuts directly into the bottom line. For a more detailed look at the balance sheet and credit risks, check out Breaking Down BayCom Corp (BCML) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You want to know how BayCom Corp (BCML) is funding its operations, and the short answer is: heavily through equity, especially after a significant deleveraging move in 2025. Their capital structure is exceptionally conservative, which is a clear signal of balance sheet strength in the current rate environment.

At the end of the third quarter of 2025, BayCom Corp's shareholders' equity-the value of the company belonging to its owners-stood at a robust $334.3 million. This equity base is the primary engine of their funding. On the debt side, the picture is remarkably clean. The company reported having no outstanding short-term debt, and no other borrowings beyond a small, legacy component.

The biggest news in their 2025 financing strategy was the redemption of all outstanding subordinated debt during the third quarter. This move eliminated $63.8 million in debt, which had been on the books at the end of the second quarter of 2025. This action immediately reduced their leverage and interest expense, strengthening their capital ratios.

Here's the quick math on their long-term structural leverage:

• Total Shareholders' Equity (Sep 30, 2025): $334.3 million
• Long-Term Debt (Junior Subordinated Debentures, Sep 30, 2025): $8.7 million

This leaves a calculated long-term debt-to-equity ratio (D/E) of approximately 2.6% ($8.7M / $334.3M). That's a very low number, especially when you compare it to the broader Financials sector average for long-term debt-to-equity, which hovers around 53.3%. This is a defintely a low-risk profile.

The company's balance between debt financing and equity funding is now heavily weighted toward equity. Banks use debt differently than manufacturing firms-customer deposits are their main liability, not long-term debt-but the redemption of the subordinated debt shows a proactive decision to minimize expensive, non-deposit funding. This conservative stance is a strong indicator of management's focus on capital preservation and regulatory compliance, ensuring the bank remains 'well-capitalized.' For a deeper dive into who is investing in this capital structure, you should read Exploring BayCom Corp (BCML) Investor Profile: Who's Buying and Why?

What this estimate hides is the total liabilities, which for a bank include all customer deposits. However, focusing on structural debt like this subordinated debenture shows the true leverage of the holding company itself. Their recent action is a clear signal: they are prioritizing a fortress balance sheet over marginal returns from debt-fueled growth, a smart move in a high-interest-rate environment.

Liquidity and Solvency

For a financial institution like BayCom Corp (BCML), assessing liquidity requires looking past the traditional Current and Quick Ratios, which are largely irrelevant for banks. Instead, we focus on the stability of their funding base (deposits) and the quality of their liquid assets. The direct takeaway is that BayCom Corp maintains a solid liquidity position, supported by a stable deposit base and positive operating cash flow, though their aggressive investing activities are a significant cash use.

As of the most recent quarter (MRQ) ending September 30, 2025, BayCom Corp reported Total Cash of approximately $228.45 million. This cash buffer is a primary indicator of immediate liquidity. The standard Current Ratio and Quick Ratio are not typically calculated or meaningful for banks because their primary current liability, customer deposits totaling $2.2 billion as of Q3 2025, is their core funding source, not an immediate operating obligation in the same way as a typical corporate liability.

Here's the quick math on their funding stability:

• Total Deposits (Q3 2025): $2.2 billion
• Noninterest-Bearing Deposits (Q3 2025): $618.1 million, representing 27.7% of total deposits

The high proportion of noninterest-bearing deposits-money the bank doesn't pay interest on-shows a strong, sticky customer base, which is a key measure of funding stability and, therefore, long-term liquidity strength. The company also took proactive steps in Q3 2025 to strengthen its balance sheet by repaying subordinated debt, which reduces long-term financial leverage and improves overall solvency.

The cash flow statement overview for the Trailing Twelve Months (TTM) ending September 30, 2025, gives us a clear picture of where the cash is moving. This is where the real story of BayCom Corp's near-term capital deployment lies.

The substantial negative cash flow from investing activities (-$120.80 million TTM) is expected for a growing bank, as they are in the business of lending and buying investment securities. This outflow is being funded by the stable deposit base and the positive cash from operations ($30.98 million TTM). Still, the need for continued deposit growth to fund this lending pace is a constant pressure.

The financing cash flow activities show a commitment to shareholders. In Q3 2025 alone, the company repurchased 33,300 shares at an average cost of $27.29 per share, totaling approximately $0.91 million, and declared a cash dividend of $0.25 per share. This consistent return of capital, coupled with the management's commentary on remaining 'well-capitalized' for regulatory purposes, indicates a strong regulatory capital position, which is the ultimate measure of a bank's long-term solvency. You can dive deeper into who is driving this demand in Exploring BayCom Corp (BCML) Investor Profile: Who's Buying and Why?

The one potential liquidity concern is the increase in the provision for credit losses, which rose by $2.8 million in Q3 2025 compared to Q2 2025, signaling a cautious approach to potential loan deterioration in the current economic environment. This is a prudent move, defintely, but it does reduce net income and acts as a non-cash drag on capital. The company's allowance for credit losses also increased to $20.8 million as of September 30, 2025.

Valuation Analysis

You're looking at BayCom Corp (BCML) and asking the core question: Is this stock a bargain, or are we paying too much for future growth? Based on the latest fiscal year 2025 data, the numbers suggest BayCom Corp (BCML) is currently undervalued relative to its book value and trades at a modest multiple compared to the broader financial sector. It's a classic value play in a regional bank setting.

Here's the quick math on the key valuation multiples, which really tell the story of a bank stock. We'll look at the Price-to-Earnings (P/E) ratio and the Price-to-Book (P/B) ratio, which are the most critical metrics for a bank. We'll skip Enterprise Value-to-EBITDA (EV/EBITDA) because, honestly, it's not a meaningful metric for a bank whose primary assets are loans, not industrial equipment.

• Price-to-Earnings (P/E): The trailing P/E ratio is around 12.89x. The forward P/E, based on 2025 earnings estimates, is even lower at about 11.68x. To be fair, this is slightly below the Financial Services sector average of 13.58x, suggesting a small discount.
• Price-to-Book (P/B): This is the big one for banks. BayCom Corp (BCML) trades at a P/B ratio of just 0.92x. Any P/B ratio below 1.0x means the market values the company for less than its net asset value (what shareholders would theoretically get if the bank liquidated all assets and paid off all liabilities).
• Price-to-Tangible Book Value (P/TBV): A more conservative measure, P/TBV is 1.05x. This is still a very reasonable multiple, showing the market is not pricing in excessive growth.

The market is defintely not getting ahead of itself on this one.

Stock Price Trend and Dividend Story

The stock price trend over the last 12 months shows the market is slowly recognizing this value. BayCom Corp (BCML) has seen its stock price increase by over 20.65% in the 52 weeks leading up to October 2025, trading in a 52-week range of $22.22 to $30.96. This climb suggests a positive momentum shift from its lows, but it still sits below its 52-week high, meaning there's room to run if the fundamentals hold up.

Plus, you get paid to wait. The company offers a solid dividend yield of about 3.68%, with an annual dividend of $1.00 per share. The payout ratio is a very sustainable 35.72%, meaning earnings easily cover the dividend. This low payout ratio gives the company flexibility to reinvest or increase the dividend further, which is a sign of financial health, especially in a rising-rate environment.

Analyst Consensus and Price Target

The professional consensus aligns with the value narrative. Wall Street analysts have a generally positive outlook. The consensus rating is a Moderate Buy or Strong Buy, based on recent ratings. The average 12-month price target is set between $31.00 and $32.00. This target suggests an upside potential of approximately 10.12% to 17.17% from the current stock price of around $28.15.

What this estimate hides is the potential for multiple expansion. If the P/B ratio simply moved from 0.92x to 1.1x-still a conservative level for a healthy bank-the stock price would jump significantly. The clear next step is to dig into the credit quality and net interest margin (NIM) trends, which you can find more about in our full analysis: Breaking Down BayCom Corp (BCML) Financial Health: Key Insights for Investors.

Risk Factors

You need to look past BayCom Corp (BCML)'s steady asset base and focus squarely on the credit risk building up in their commercial real estate (CRE) portfolio. That concentration, coupled with the pressure of higher funding costs, is why their net income for the third quarter of 2025 dropped to just $5.0 million, a 21.3% decrease from the previous quarter. The immediate headwind is the significant money they had to set aside for potential loan losses.

Credit and Concentration Risk

The core of BayCom Corp's risk profile is its heavy exposure to commercial real estate. Honestly, it's a staggering bet on one sector. As of December 31, 2024, CRE loans made up a massive 85.5% of their total loan portfolio. Here's the quick math: that concentration represented 320.2% of the company's total regulatory capital, which is a level that draws extra scrutiny from regulators. The CRE concentration is the single most important metric to watch.

The strain is showing up in the numbers. Nonperforming loans (NPLs)-the loans where borrowers are struggling to pay-have been trending up year-over-year. While NPLs decreased slightly to $13.9 million, or 0.68% of total loans, at the end of Q3 2025, that figure is still up from $9.7 million, or 0.51%, a year prior. This rising risk is why the Provision for Credit Losses (PCL) spiked to a substantial $3.0 million in Q3 2025, compared to only $203,000 in Q2 2025.

Navigating Interest Rate and Liquidity Headwinds

BayCom Corp is also grappling with the broader market risk of high interest rates. The bank's Net Interest Margin (NIM), which is the key measure of lending profitability, slipped to 3.72% in Q3 2025, down from 3.77% in the prior quarter. This compression shows the ongoing battle to keep asset yields rising faster than the cost of deposits and other funding. They have to manage their asset and liability mix defintely carefully to mitigate this volatility.

Liquidity is another area to monitor. The bank relies on deposits from a concentrated group of clients, notably labor unions. If a significant portion of these deposits were withdrawn, it could force the bank to seek more expensive funding sources, which would further compress that 3.72% NIM. Still, their management has been proactive.

Strategic and Regulatory Exposures

The high CRE concentration doesn't just impact credit risk; it also triggers increased regulatory scrutiny from the FDIC and Federal Reserve. This means more compliance costs and operational challenges. Also, BayCom Corp's long-term strategy relies significantly on acquisitions to fuel growth, which introduces execution risk. Integrating new banks can lead to operational disruptions or a failure to realize the expected benefits.

Management is taking clear actions, though. They have strengthened the balance sheet by fully repaying their subordinated debt during Q3 2025, eliminating $63.8 million in debt from the June 30, 2025 balance. Plus, they increased the Allowance for Credit Losses (ACL) to $20.8 million, or 1.02% of total loans, at September 30, 2025, which provides a better cushion against those rising NPLs. You can read more about the full financial picture in Breaking Down BayCom Corp (BCML) Financial Health: Key Insights for Investors.

• Increase the ACL to 1.02% of total loans.
• Repay $63.8 million in subordinated debt.
• Enhance risk management, especially in CRE lending.

Growth Opportunities

You're looking at BayCom Corp (BCML) and wondering where the juice is coming from next. Honestly, the growth story for a regional bank like BayCom isn't about some flashy new fintech product; it's about disciplined execution in their core markets and smart consolidation. The direct takeaway is this: their future growth is anchored in a dual strategy of targeted acquisitions and organic loan portfolio expansion, particularly in the Western U.S.

The analysts' consensus for the 2025 fiscal year suggests an Earnings Per Share (EPS) of approximately $2.20, which puts their forward Price-to-Earnings (P/E) ratio around 12.41 based on December 2025 estimates. That's a reasonable valuation for a bank with a forecast annual earnings growth rate of 13.3% and a revenue growth rate of 6.5% per annum.

Here's the quick math on their core growth drivers, which are less about innovation and more about boots-on-the-ground banking:

• Acquisition Engine: BayCom Corp has a proven playbook, completing ten strategic acquisitions since 2010 to achieve economies of scale and expand their footprint.
• Geographic Expansion: As of September 30, 2025, they operate 34 full-service branches, including 16 in California and 11 in Colorado. This focus on lending growth in metropolitan markets, while building deposits in community markets, is a classic, effective strategy.
• Lending Focus: The primary growth driver in their loan portfolio-which reached $2.04 billion by Q3 2025-is concentrated in commercial real estate and residential loans. They also have a strong niche in government-guaranteed lending, offering a full range of Small Business Administration (SBA), CalCAP, FSA, and USDA guaranteed loans. That's a defintely solid product-market fit for small-to-mid-sized businesses.

The bank's competitive advantage, what we call their 'moat' in this business, is simple: a focus on 'speed of execution' and direct access to decision-makers for their commercial clients. In the community banking space, that kind of knowledgeable, professional service is a key differentiator against larger, more bureaucratic institutions.

In terms of capital management, BayCom Corp is actively returning value to shareholders. They increased their quarterly cash dividend to $0.25 per share in Q3 2025, a move that signals confidence in their cash flow stability. They also repurchased 33,300 shares of common stock in the third quarter of 2025, which helps boost EPS for the remaining shares. What this estimate hides, still, is the rising provision for credit losses, which hit nearly $3.0 million in Q3 2025, up significantly from $1.25 million a year prior. That's a near-term risk you need to keep an eye on.

For a detailed look at the numbers behind this strategy, here are the key performance indicators for the first nine months of 2025:

Their focus remains on organic loan growth, evidenced by the increase in total loans, but the rise in the allowance for credit losses to $20.8 million as of September 30, 2025, from $17.9 million at the end of 2024, shows a prudent, realistic view of the current credit environment. If you want to dive deeper into the credit quality, you can find more in Breaking Down BayCom Corp (BCML) Financial Health: Key Insights for Investors.