TSMC to Hike Prices for Chips Made Outside Taiwan, Impacting Global Device Costs 
Meta AI to Supercharge WhatsApp, Facebook, Instagram via Powerful Integration 
Tesla Dismisses 285 Buffalo, New York Workers in Restructuring Efforts 
The Original Mouthful: McDonald's Australia Revives Legendary Big Mac Chant with a Tech Twist 
Samsung Targets Beijing’s EV Semiconductor Market at Auto China 2024 
Mister Donut and Gion Tsujiri Unite Once More for Kyoto-Inspired Donut Delights 
Samsung Implements Emergency 6-Day Work Week to Combat Slowing Growth 
LG Electronics Eyes $1 Billion Through Bond Deal 
LVMH Adds Bernard Aranault’s Sons Frederic and Alexandre Arnault to the Board 
Google Fired Workers Protesting Over Cloud Contract Deal With Israel 
Low pay and few contracts make freelance journalism a bleak prospect in 2024 
Huawei Unveils Pura 70 Series to Rival Apple's Dominance in China's Smartphone Arena 
Canada Set to Enforce OECD Crypto Tax Standards by 2026 
Taeyoung to Sack Executives, Cut Employees' Salaries to Save Company 
Kawhi Leonard and New Balance Launch the Highly Anticipated KAWHI IV Sneaker 
Coca-Cola Launches Global 'Recycle Me' Campaign to Champion Recycling 
Lotte Wellfood Brings Its Pepero Products to Thailand’s King Power Duty-Free Shop 
WALNUT CREEK, Calif., July 26, 2017 -- BayCom Corp, “Company”, (OTCBB:BCML), announced quarterly earnings of $1.5 million in the second quarter of 2017, compared to $1.4 million in the first quarter of 2017 and $1.5 million in the second quarter of 2016. Diluted earnings per share were $0.27 in the second quarter 2017 compared to $0.26 in the first quarter and to $0.27 in the second quarter of 2016.
President and Chief Executive Officer, George J. Guarini stated, “A highlight of our second quarter 2017 financial performance was the closing of our merger for First ULB Corp. In addition, our financial performance continues to demonstrate our presence in the SBA lending market. Our total assets increased to nearly $1.2 billion.”
Mr. Guarini added, “We have completed the conversion and integration of the two banks in the second quarter and we are now positioned to take on new opportunities. This is demonstrated by our recent announcement to acquire Plaza Bank in Seattle, Washington. The merger with Plaza Bank allows us to expand our market presence in Seattle.”
The Bank also provided the following highlights on its operating and financial performance for the second quarter of 2017:
- Loans totaled $859.3 million at June 30, 2017, compared to $535.5 million at March 31, 2017 and $508.3 million at December 31, 2016. New loan volume was approximately $42.2 million in the second quarter of 2017 compared to $38.4 million in the first quarter 2017.
- Deposits totaled $1,031.8 million at June 30, 2017 compared to $610.0 million at March 31, 2017 and $590.8 million at December 31, 2016. As of June 30, 2017, non-interest bearing deposits represent 30.2% of total deposits and the cost of total deposits decreased to 0.38% compared to 0.68% at March 31, 2017.
- Non-accrual loans represented 0.04% of total loans as of June 30, 2017 resulting in a Texas ratio of 0.59%. The provision for loan losses recorded in the second quarter 2017 totaled $144 thousand.
- All capital ratios are well above regulatory requirements for a Well-capitalized institution. The Bank’s total risk-based capital ratio was 12.15% at June 31, 2017 compared to 13.86% at December 31, 2016, and the tangible common equity to tangible assets ratio was 8.61% compared to 11.45% at December 31, 2016.
Loans and Credit Quality
Loan originations in the second quarter of 2017 were spread throughout our markets with the majority focused in Santa Clara, Alameda and San Francisco Counties. By loan type, owner-user real estate, investor real estate and multi-family residential real estate accounted for the majority of the new loan volume in the quarter.
Year-to-date loan originations of $35.5 million are approx. $8.2 million lower than compared to the first quarter 2017. Payoffs totaled $20.5 million in the quarter ended June 30, 2017 were primarily the result of property sales or planned events. Payoffs for the first quarter 2017 were $21.7 million.
Non-accrual loans totaled $368 thousand, or 0.04% of the loan portfolio at June 30, 2017, compared to $1.0 million, or 0.21%, at December 31, 2016 and $1.9 million, or 0.38% a year ago. Accruing loans past due 30 to 89 days totaled $654 thousand at June 30, 2017, compared to $625 thousand at December 31, 2016 and $174 thousand a year ago.
The provision for loan losses recorded in the second quarter of 2017 totaled $144 thousand primarily to provide for loan growth. Recoveries net of charge-offs for the first quarter totaled $5 thousand compared to net recoveries of $7 thousand in the first quarter 2017 and recoveries of $4 thousand in the same quarter a year ago. The ratio of allowance for loan losses to loans totaled 0.51% at June 30, 2017 compared to 0.73% at March 31, 2017. As of June 30, 2017, acquired loans totaling $386.2 million are covered by mark to market valuations.
Investments and Borrowings
The investment portfolio totaled $61.9 million at June 30, 2017, an increase of $37.2 million from March 31, 2017 mainly due to the acquisition of investment securities in the merger with First ULB.
As of June 30, 2017, other borrowings totaled $6.0 million and Trust Preferred Securities, net of a market value premium, totaled $5.4 million. Neither was outstanding as of March 31, 2017.
Deposits
Deposits totaled $1,031.8 million at June 30, 2017, compared to $610.0 million at March 31, 2017 and $535.7 million at June 30, 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 $311.5 million, or 30.2% of total deposits, compared to 23.3% at March 31, 2017 and 21.7% at December 31, 2016.
Earnings
Net interest income totaled $9.4 million for the second quarter 2017 compared to $6.6 million for the same period in 2016.
The tax-equivalent net interest margin was 4.07% in the second quarter of 2017, compared to 4.15% in the prior quarter and 3.91% in the same quarter a year ago. The increase from last quarter includes 29 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 $14.4 million, $7.4 million, and $8.9 million at June 30, 2017, December 31, 2016, and June 30, 2016, respectively.
Accretion and gains on payoffs of purchased loans recorded to interest income were $735 thousand for the second quarter 2017 compared to $557 thousand for first quarter 2017, and $650 thousand for the same period last year.
Non-interest income in the first quarter of 2017 totaled $1.6 million, compared to $735 thousand in the prior quarter and $308 thousand in the same quarter a year ago. The increase compared to the prior quarter primarily relates to gain on sale of loans totaling $875 thousand in the second quarter 2017 compared to $400 thousand in the first quarter of 2017 and to none in the same quarter last year.
Non-interest expense totaled $8.2 million in the second quarter of 2017 up from $4.5 million last quarter and $4.0 million in the same quarter last year. Merger related expenses recorded in the second quarter total $2.3 million. The remaining increase is related to higher operating expenses due to the merger including an increase in the number of employees, branch offices and data process charges as a result of higher volume.
About BayCom Corp
Through its wholly owned subsidiary, United Business 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.unitedbusinessbank.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.
| FINANCIAL HIGHLIGHTS | ||||||||||||||
| June 30, 2017 | March 31, 2017 | June 30, 2016 | ||||||||||||
| Quarter-To-Date | ||||||||||||||
| Net Income | $ | 1,501,414 | $ | 1,416,266 | $ | 1,455,333 | ||||||||
| Diluted Earnings Per Common Share | $ | 0.27 | $ | 0.26 | $ | 0.27 | ||||||||
| Return On Average Assets (ROA) | 0.60 | % | 0.83 | % | 0.92 | % | ||||||||
| Return On Average Equity (ROE) | 6.24 | % | 7.17 | % | 7.86 | % | ||||||||
| Efficiency Ratio | 73.91 | % | 63.82 | % | 58.15 | % | ||||||||
| Net Interest Margin | 3.90 | % | 3.91 | % | 4.40 | % | ||||||||
| Net Charge-Offs/(Recoveries) | $ | (5,250 | ) | $ | (6,503 | ) | $ | (4,173 | ) | |||||
| Net Charge-Offs/(Recoveries) To Average Loans | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||
| Year-To-Date | ||||||||||||||
| Net Income | $ | 2,917,680 | $ | 1,416,266 | $ | 2,804,087 | ||||||||
| Diluted Earnings Per Common Share | $ | 0.53 | $ | 0.26 | $ | 0.52 | ||||||||
| Return On Average Assets (ROA) | 0.69 | % | 0.83 | % | 0.88 | % | ||||||||
| Return On Average Equity (ROE) | 6.66 | % | 7.17 | % | 7.63 | % | ||||||||
| Efficiency Ratio | 69.95 | % | 63.82 | % | 61.39 | % | ||||||||
| Net Interest Margin | 3.95 | % | 3.96 | % | 4.27 | % | ||||||||
| Net Charge-Offs/(Recoveries) | $ | (11,753 | ) | $ | (6,503 | ) | $ | (8,048 | ) | |||||
| Net Charge-Offs/(Recoveries) To Average Loans | 0.00 | % | 0.00 | % | 0.00 | % | ||||||||
| At Period End | ||||||||||||||
| Total Assets | $ | 1,155,943,167 | $ | 697,397,629 | $ | 641,773,583 | ||||||||
| Loans: | ||||||||||||||
| Real Estate | $ | 761,120,570 | $ | 461,299,207 | $ | 443,545,296 | ||||||||
| Non-real estate | 107,092,657 | 73,570,589 | 66,098,087 | |||||||||||
| Loans Held for Sale | 4,383,428 | - | ||||||||||||
| Non-accrual loans | 367,795 | 991,755 | 1,909,952 | |||||||||||
| Mark to market on acquired loans | (9,261,310 | ) | (4,717,212 | ) | (6,636,817 | ) | ||||||||
| Total Loans | $ | 859,319,712 | $ | 535,527,767 | $ | 504,916,518 | ||||||||
| Classified Assets (Graded Substandard and Doubtful) | $ | 7,164,099 | $ | 8,644,709 | $ | 9,150,090 | ||||||||
| Total Accruing Loans 30-89 Days Past Due | $ | 654,483 | $ | 338,668 | $ | 228,000 | ||||||||
| Loan Loss Reserve To Loans | 0.51 | % | 0.73 | % | 0.84 | % | ||||||||
| Loan Loss Reserve to Non-accrual loans | 1184.08 | % | 395.76 | % | 220.95 | % | ||||||||
| Non-Accrual Loans To Total Loans | 0.04 | % | 0.19 | % | 0.38 | % | ||||||||
| Texas Ratio | 0.59 | % | 2.45 | % | 2.42 | % | ||||||||
| Total Deposits | $ | 1,031,780,780 | $ | 609,952,562 | $ | 535,660,525 | ||||||||
| Loan-To-Deposit Ratio | 83.29 | % | 87.80 | % | 95.50 | % | ||||||||
| Stockholders' Equity | $ | 104,017,747 | $ | 79,579,734 | $ | 74,555,843 | ||||||||
| Book Value Per Share | $ | 15.20 | $ | 14.54 | $ | 13.71 | ||||||||
| Tangible Book Value Per Share | $ | 13.14 | $ | 14.40 | $ | 13.53 | ||||||||
| Tangible Common Equity To Tangible Assets | 8.61 | % | 11.32 | % | 11.48 | % | ||||||||
| Total Risk-Based Capital Ratio-Bank | 12.15 | % | 13.99 | % | 13.65 | % | ||||||||
| Full-Time Equivalent Employees | 152 | 105 | 106 | |||||||||||
| BAYCOM CORP STATEMENT OF CONDITION (UNAUDITED) At June 30, 2017, March 31, 2017, and December 31, 2016 | |||||||||
| Audited | |||||||||
| June 30, 2017 | March 31, 2017 | December 31, 2016 | |||||||
| Assets | |||||||||
| Cash and due from banks | $ | 201,181,847 | $ | 125,531,611 | $ | 128,684,416 | |||
| Investments | 61,894,919 | 24,690,663 | 26,393,451 | ||||||
| Loans, net of allowance for loan losses and deferred fees | 854,640,346 | 531,441,926 | 504,264,026 | ||||||
| Bank premises and equipment, net | 8,527,362 | 1,008,798 | 1,106,030 | ||||||
| Core Deposit Premium | 4,941,677 | 719,372 | 802,436 | ||||||
| Goodwill | 9,125,500 | - | - | ||||||
| Interest receivable and other assets | 15,631,516 | 14,005,259 | 14,048,162 | ||||||
| Total assets | $ | 1,155,943,167 | $ | 697,397,629 | $ | 675,298,520 | |||
| Liabilities and Stockholders' Equity | |||||||||
| Liabilities | |||||||||
| Deposits | |||||||||
| Non-interest bearing | $ | 311,522,277 | $ | 142,436,582 | $ | 128,696,712 | |||
| Interest bearing | |||||||||
| MMA/NOW/SVG | 376,952,820 | 125,059,037 | 128,970,967 | ||||||
| Premium MM | 146,783,810 | 178,197,667 | 171,947,166 | ||||||
| Time Deposits | 196,521,873 | 164,259,276 | 161,143,915 | ||||||
| Total deposits | $ | 1,031,780,780 | $ | 609,952,562 | $ | 590,758,760 | |||
| Federal Home Loan Bank (FHLB) and other borrowings | 11,356,954 | - | - | ||||||
| Interest Payable and other liabilities | 8,787,686 | 7,865,333 | 6,476,580 | ||||||
| Total liabilities | $ | 1,051,925,420 | $ | 617,817,895 | $ | 597,235,340 | |||
| Stockholders' Equity | |||||||||
| Common Stock, no par value | $ | 69,393,816 | $ | 47,632,398 | $ | 47,540,808 | |||
| Retained earnings | 34,521,615 | 31,850,203 | 30,433,937 | ||||||
| Accumulated other comprehensive income | 102,316 | 97,133 | 88,434 | ||||||
| Total stockholders' equity | 104,017,747 | 79,579,734 | 78,063,179 | ||||||
| Total liabilities and stockholders' equity | $ | 1,155,943,167 | $ | 697,397,629 | $ | 675,298,520 | |||
| STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) | |||||||||||||||||||||||
| Audited | |||||||||||||||||||||||
| Three months ended | Six months ended | Years Ended | |||||||||||||||||||||
| June 30, | June 30, | June 30, | June 30, | December 31, | |||||||||||||||||||
| 2017 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||||||
| Interest income | |||||||||||||||||||||||
| Interest Income - Non RE | $ | 1,304,685 | $ | 873,450 | $ | 2,278,483 | $ | 1,812,524 | $ | 3,542,281 | |||||||||||||
| Interest Income - RE | 8,130,506 | 5,487,036 | 13,605,147 | 10,579,450 | 21,496,827 | ||||||||||||||||||
| Interest on investment securities | 480,813 | 187,224 | 758,926 | 428,492 | 809,398 | ||||||||||||||||||
| Interest on Federal funds sold and other bank deposits | 137,908 | 102,847 | 255,400 | 163,511 | 422,510 | ||||||||||||||||||
| Mark to market accretion and FAS 91 Fee amortization | 663,306 | 815,134 | 1,220,803 | 1,624,787 | 3,354,471 | ||||||||||||||||||
| Total interest income | $ | 10,717,218 | $ | 7,465,691 | $ | 18,118,759 | $ | 14,608,764 | $ | 29,625,487 | |||||||||||||
| Interest expense | |||||||||||||||||||||||
| Interest on transaction accounts | 466,358 | 367,712 | 917,505 | 742,147 | 1,597,440 | ||||||||||||||||||
| Interest on time deposits | 504,618 | 344,445 | 971,743 | 660,239 | 1,476,134 | ||||||||||||||||||
| Premium on core deposits | 212,696 | 105,000 | 295,760 | 210,000 | 398,064 | ||||||||||||||||||
| Interest on borrowings | 100,955 | - | 100,955 | - | - | ||||||||||||||||||
| Total interest expense | $ | 1,284,627 | $ | 817,157 | $ | 2,285,963 | $ | 1,612,386 | $ | 3,471,638 | |||||||||||||
| Net interest income | 9,432,591 | 6,648,534 | 15,832,796 | 12,996,378 | 26,153,849 | ||||||||||||||||||
| Provision for loan losses | 143,949 | 365,828 | 287,446 | 361,953 | 598,463 | ||||||||||||||||||
| Net interest income after provision for loan losses | $ | 9,288,642 | $ | 6,282,706 | $ | 15,545,350 | $ | 12,634,425 | $ | 25,555,386 | |||||||||||||
| Non-interest income | |||||||||||||||||||||||
| Loan Fee Income | 252,777 | 74,671 | 309,699 | 142,694 | 331,336 | ||||||||||||||||||
| Service Charge Income | 60,006 | 53,310 | 107,974 | 116,912 | 227,904 | ||||||||||||||||||
| Other Fees & Service Charges | 238,967 | 94,133 | 333,516 | 189,949 | 379,132 | ||||||||||||||||||
| Gain on sale of loans | 875,434 | - | 1,275,434 | - | - | ||||||||||||||||||
| Other Income | 201,824 | 86,227 | 337,926 | 198,206 | 420,166 | ||||||||||||||||||
| Total non-interest income | $ | 1,629,008 | $ | 308,341 | $ | 2,364,549 | $ | 647,761 | $ | 1,358,538 | |||||||||||||
| Non-interest expense | |||||||||||||||||||||||
| Salaries and Benefits | 3,946,848 | 2,575,184 | 7,029,101 | 5,407,188 | 10,610,511 | ||||||||||||||||||
| Occupancy | 790,103 | 544,666 | 1,359,492 | 1,081,893 | 2,147,472 | ||||||||||||||||||
| Professional | 461,219 | 175,474 | 591,190 | 414,955 | 773,073 | ||||||||||||||||||
| Insurance | 121,626 | 106,875 | 199,654 | 198,048 | 349,072 | ||||||||||||||||||
| Data processing | 2,073,766 | 355,951 | 2,433,661 | 679,042 | 1,386,115 | ||||||||||||||||||
| Office | 310,137 | 162,982 | 476,883 | 326,367 | 670,759 | ||||||||||||||||||
| Marketing | 156,373 | 55,411 | 211,366 | 114,724 | 269,576 | ||||||||||||||||||
| Net Loan | 127,219 | 11,611 | 178,212 | 36,000 | 118,630 | ||||||||||||||||||
| Other Miscellaneous | 188,045 | 57,160 | 249,811 | 117,378 | 241,279 | ||||||||||||||||||
| Total non-interest expense | $ | 8,175,336 | $ | 4,045,314 | $ | 12,729,370 | $ | 8,375,595 | $ | 16,566,487 | |||||||||||||
| Income before provision for income taxes | 2,742,314 | 2,545,733 | 5,180,529 | 4,906,589 | 10,347,437 | ||||||||||||||||||
| Provision for income taxes | 1,240,900 | 1,090,400 | 2,262,850 | 2,102,500 | 4,435,500 | ||||||||||||||||||
| Net income | $ | 1,501,414 | $ | 1,455,333 | $ | 2,917,680 | $ | 2,804,087 | $ | 5,911,936 | |||||||||||||
| Net income per common share: | |||||||||||||||||||||||
| Basic | $ | 0.27 | $ | 0.27 | $ | 0.53 | $ | 0.52 | $ | 1.10 | |||||||||||||
| Diluted | $ | 0.27 | $ | 0.27 | $ | 0.53 | $ | 0.52 | $ | 1.09 | |||||||||||||
| Weighted average shares used to compute net income per common share: | |||||||||||||||||||||||
| Basic | 5,572,643 | 5,359,762 | 5,484,390 | 5,359,762 | 5,392,597 | ||||||||||||||||||
| Diluted | 5,625,756 | 5,377,257 | 5,537,503 | 5,377,257 | 5,430,345 | ||||||||||||||||||
| Comprehensive income: | |||||||||||||||||||||||
| Net income | $ | 1,501,414 | $ | 1,455,333 | $ | 2,917,680 | $ | 2,804,087 | $ | 5,911,936 | |||||||||||||
| Other comprehensive income | |||||||||||||||||||||||
| Change in net unrealized gain (loss) on available-for-sale securities | 8,807 | 82,733 | 23,589 | 114,535 | (231,687 | ) | |||||||||||||||||
| Deferred tax expense (benefit) | (3,624 | ) | (34,333 | ) | (9,707 | ) | (47,532 | ) | 198,493 | ||||||||||||||
| Other comprehensive income (loss), net of tax | 5,183 | 48,400 | 13,882 | 67,003 | (33,194 | ) | |||||||||||||||||
| Comprehensive income | $ | 1,506,597 | $ | 1,503,733 | $ | 2,931,562 | $ | 2,871,090 | $ | 5,878,742 | |||||||||||||
BayCom Corp Keary Colwell, 925-476-1800 [email protected]
