BayCom (BCML) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $8.2 million ($0.75 per diluted share), up 43.5% year-over-year and 19% sequentially, driven by higher net interest income, a reversal of provision for credit losses, and increased noninterest income.

• Total assets increased 2.1% to $2.65 billion at March 31, 2026, driven by higher cash and investment securities, partially offset by a decrease in loans.

• The company operates a single banking segment, focusing on commercial lending and deposit growth across 34 branches in five states.

• Leadership transition announced post-quarter, with new CEO, CFO, and Executive Vice Chair appointed to drive growth and strategic initiatives.

• Unusual items, including accretion income, FHLB special dividend, and credit loss reversal, boosted earnings by $0.12 per share.

Financial highlights

• Net interest income increased 10.1% year-over-year to $25.2 million, with annualized net interest margin improving to 4.11% from 3.83% year-over-year.

• Total loans decreased 2.7% to $2.01 billion, primarily due to repayments outpacing new originations.

• Deposits grew 2.3% to $2.27 billion, with noninterest-bearing deposits comprising 26.9% of the total.

• Noninterest income increased 74.6% sequentially to $1.5 million, mainly due to equity securities gains and higher loan sale gains.

• Noninterest expense rose 2.1% sequentially and 3.2% year-over-year, mainly from higher salaries and benefits.

Outlook and guidance

• Management expects a stronger loan pipeline and improved loan demand in the remainder of 2026, following a challenging Q1.

• The company remains focused on organic and acquisition-driven growth, maintaining strong capital and liquidity positions.

• Leadership transition is intended to support the next phase of growth and expansion in the Western Region.

• Management expects minimal future impact from acquired loan accretion and special FHLB dividends.