The securities repositioning loss is a one-time event with a stated 3-year payback period (~3 years), but the spike in 30-89 day delinquencies ($12.4M, +$10.1M QoQ) and rising NPLs (0.52%) warrant close monitoring of credit quality trends in the next quarter. The new management team's execution on deposit cost control (1.57% cost of deposits) and loan growth trajectory will determine if the core earnings recovery trajectory.
Price Chart
Executive Summary
BayCom Corp reported Q3 2026 net income of $1.1M ($0.10 diluted EPS), a sharp decline from $5.0M ($0.46) in Q3 2025, driven by a $6.8M loss on the strategic repositioning of its investment securities portfolio. Core net interest income grew 9.2% YoY to $25.6M and net interest margin expanded 43bp to 4.11%, but the securities restructuring loss and elevated noninterest expense overwhelmed operating improvement, resulting in a significant earnings miss vs consensus.
Key Financial Metrics
Key Facts
- Q3 2026 GAAP diluted EPS of $0.10 vs consensus $0.56 (miss of 82.1%)
- Net income fell 77.1% YoY to $1.1M from $5.0M in Q3 2025
- Strategic repositioning: sold $106.8M of AFS securities at a $6.8M loss; redeployed into higher-yielding securities
- Net interest income grew $2.2M YoY to $25.6M; NIM expanded 43bp to 4.11%
- Total loans grew 3.7% QoQ to $2.2B; deposits grew 5.6% QoQ to $2.3B
- Nonperforming loans increased to 0.52% of total loans from 0.47% in Q2 2026
- Accruing loans 30-89 days past due jumped to $12.4M from $2.2M in Q2 2026
- Provision for credit losses was $843K vs $5.2M in Q2 2026
- Efficiency ratio deteriorated to 89.41% vs 62.15% in Q3 2025
Financial Impact
GAAP EPS of $0.10 vs consensus $0.56 (82.1% miss); net income of $1.1M vs $5.0M vs consensus $6.2M in Q3 2025; $6.8M securities repositioning loss reduced EPS by ~$0.50 per share
Risk Factors
- Credit quality deterioration: 30-89 day past due loans surged $10.1M QoQ, including one $8.5M hotel CRE hotel loan
- Earnings volatility from the securities repositioning may not fully recoup costs within the 3-year payback period
- Elevated efficiency ratio of 89.41% vs 62.15% indicates structural cost structure
- NIM expansion of 4.11% may not sustain if deposit costs rise
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001730984-26-000081 |
| Document: bcml-20261022x8k.htm | 0001730984-26-000081 |
| Document: 0001730984-26-000081-index-headers.html | 0001730984-26-000081 |
| Document: 0001730984-26-000081-index.html | 0001730984-26-000081 |
| Document: 0001730984-26-000081.txt | 0001730984-26-000081 |
| 8-K Data (Synthetic) | 0001730984-26-000081 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 3d ago | 8-K | $30.45 | awaiting T+20 | — | $30.45 (−0.00%) |
Aug 11, 2026 10w ago | Insider Buy | $31.25 $30.06 | ▼ −3.81% | ▼ −2.75% | $30.45 (−2.56%) |
Jul 24, 2026 13w ago | 8-K | $30.57 $30.12 | ▼ −1.47% | ▼ −4.77% | $30.45 (−0.39%) |
Jun 29, 2026 17w ago | EFFECT | $32.70 $31.70 | ▼ −3.06% | ▼ −2.78% | $30.45 (−6.88%) |
May 22, 2026 22w ago | 8-K | $31.01 $31.44 | ▲ +1.39% | ▲ +2.80% | $30.45 (−1.81%) |
May 1, 2026 25w ago | 3 | $29.48 $30.72 | ▲ +4.21% | ▼ −1.44% | $30.45 (+3.29%) |
Apr 29, 2026 25w ago | DEFA14A | $29.98 $30.80 | ▲ +2.74% | ▼ −2.49% | $30.45 (+1.57%) |
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