BayCom Corp Reports Strong Q1 2026 Results, Announces Executive Shakeup

Key Highlights for Investors

• Q1 2026 Net Income Surges to \$8.2 Million (\$0.75 per diluted share), up 19.3% from Q4 2025 and 43.5% year-over-year.
• Annualized Return on Assets Climbs to 1.25%, up from 1.05% the previous quarter and 0.89% a year ago.
• Annualized Net Interest Margin Expands to 4.11%, from 4.03% in Q4 2025 and 3.83% in Q1 2025.
• Major Executive Leadership Transition: New President & CEO, CFO, and Executive Vice Chair appointed; involuntary termination of prior CEO, COO, and CFO.
• Strong Asset Quality Maintained, though nonperforming loans have increased.
• Dividend of \$0.30 per Share Paid to shareholders of record as of March 12, 2026.
• No Share Repurchases in Q1 2026.

Detailed Financial Performance

Earnings and Profitability Metrics

BayCom Corp (“BayCom”, NASDAQ: BCML), the holding company for United Business Bank, posted robust first quarter results for 2026. The company reported net income of \$8.2 million, or \$0.75 per diluted share, up from \$6.9 million (\$0.63 per diluted share) in Q4 2025 and \$5.7 million (\$0.51 per diluted share) in Q1 2025.

The year-over-year jump in profitability was fueled by a \$2.3 million increase in net interest income, a \$1.3 million positive swing in provision for credit losses (including a \$670,000 net recovery in the current quarter), and higher noninterest income. These were partly offset by rising noninterest expenses (notably higher salaries and benefits) and increased income tax provisioning.

Revenue Drivers

• Net Interest Income: Rose to \$25.2 million, up 0.8% from the previous quarter and 10.1% year-over-year. The increase was primarily due to higher income on loans and FHLB dividends, as well as lower interest expense on deposits.
• Net Interest Margin: Improved to 4.11%, reflecting higher average yields on loans (5.87%) and the impact of discount accretion and a special Federal Home Loan Bank (FHLB) dividend. The margin benefited from lower average deposit costs, offset by the redemption of subordinated debt.
• Noninterest Income: Grew sharply to \$1.5 million (up \$660,000 from Q4 2025), driven mainly by a swing in equity security valuations (from a \$753,000 loss to a \$58,000 gain), a higher gain on loan sales, and a gain from a Small Business Investment Company fund investment.
• Noninterest Expenses: Increased to \$16.5 million, up 2.1% quarter-over-quarter and 3.2% year-over-year, mainly due to higher salaries, incentive compensation, and employee benefit costs.

Credit Quality and Loan Portfolio

• Loans outstanding: \$2.0 billion at March 31, 2026 (down from \$2.1 billion at year-end, up from \$2.0 billion a year ago). The decline from Q4 reflected high loan repayments, partly offset by new originations and loan purchases.
• Nonperforming Loans: \$16.7 million, or 0.83% of total loans (up from \$13.4 million or 0.65% at 12/31/25 and \$10.0 million or 0.51% at 3/31/25). The increase was mainly due to a single \$4.9 million commercial real estate loan moving to nonaccrual.
• Allowance for Credit Losses: \$20.6 million, or 1.02% of total loans. The allowance ratio declined modestly reflecting lower loan balances and improved economic forecasts.
• Net Charge-Offs: Insignificant at \$14,000 for the quarter.

Deposit Growth and Liquidity

• Total Deposits: \$2.3 billion at quarter-end—up \$51.8 million (2.3%) from year-end and \$136.6 million (6.4%) from a year ago. Noninterest-bearing deposits made up 26.9% of the total.
• Funding and Liquidity: No FHLB advances, Federal Reserve borrowings, or other wholesale borrowings were outstanding at quarter-end. The company maintains robust borrowing capacity.

Capital and Shareholder Returns

• Shareholders’ Equity: \$344.0 million at 3/31/26, up from \$338.6 million at year-end.
• Book Value per Share: \$31.53; Tangible Book Value per Share: \$27.82.
• Dividend: \$0.30 per share paid April 9, 2026.
• No share repurchases in Q1 2026. (29,111 shares repurchased in Q4 2025; 50,793 in Q1 2025).
• Regulatory Capital Ratios: All well above regulatory minimums (e.g., Tier 1 leverage ratio at 11.70%, Total Capital at 15.55%).

Major Executive Leadership Transition

BayCom Corp announced a significant executive transition after quarter-end, with the involuntary termination (without cause) of its long-serving President & CEO George J. Guarini, Sr. EVP & COO Janet L. King, and Sr. EVP, CFO & Chief Administrative Officer Keary L. Colwell. The Board appointed William J. Black, Jr. as Executive Vice Chair, Christopher F. Baron as President & Chief Executive Officer, and Kevin L. Thompson as EVP, Chief Financial Officer and Corporate Secretary.

The transition aims to support BayCom’s “next phase of growth.” The departing executives will remain as non-executive employees until July 6, 2026, to assist with the transition. The company will recognize charges in Q2 2026 related to severance, equity vesting, and benefits continuation for the departing executives.

This leadership shakeup could have significant implications for BayCom’s strategic direction, management stability, and investor confidence.

Other Noteworthy Items

• Special Items Boosted EPS: The quarter included several unusual positive items (e.g., additional accretion income, FHLB special dividend, credit loss reversal) that collectively raised earnings by approximately \$0.12 per share.
• Loan Demand: Management noted loan demand was challenging during the quarter due to economic uncertainty, but the pipeline improved in April, suggesting potential loan growth ahead.
• Stable Asset Base: Total assets held steady at \$2.6 billion.
• Asset Quality Watch: Investors should monitor the uptick in nonperforming loans, mostly in commercial real estate, though consumer and other commercial loan delinquencies remain low.

Outlook and Forward-Looking Statements

Management emphasized a focus on building a growth engine, enhancing valuation, and pursuing larger, transformational opportunities. The company’s Western Region expansion remains a strategic priority. However, the leadership transition, overall economic conditions, loan demand, and asset quality developments present risks and opportunities for the business and its share price going forward.

The company issued standard cautionary statements regarding forward-looking statements and listed a range of potential risks, including the successful execution of management transition, macroeconomic trends, credit quality, regulatory and competitive pressures, and other factors that could materially affect future performance and share value.

Conclusion for Investors

• BayCom Corp delivered strong Q1 2026 earnings growth, improved margins, and maintained solid capital and liquidity.
• The surprise executive overhaul—including departure of the CEO, COO, and CFO—represents a potentially price-sensitive development with significant implications for the company’s strategy and investor outlook.
• Investors should closely monitor the execution of the new management team’s growth plans, asset quality trends, and any further updates on leadership transition costs and succession planning.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the company’s full regulatory filings and conduct their own due diligence before making investment decisions. Past performance is not indicative of future results.

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