--- title: "BayCom Q3 2026 Earnings: Margin Expansion Offset by Securities Losses" type: "News" locale: "en" url: "https://longbridge.com/en/news/302774080.md" description: "BayCom Corp (NASDAQ: BCML) reported Q3 2026 net income of $1.1 million, a 78% decline from the prior year, driven by a $6.8 million securities-sale loss and higher operating expenses. Despite a 9.2% increase in net interest income to $25.6 million and margin expansion to 4.11%, diluted EPS fell to $0.10. The company repositioned its portfolio to raise asset yields, expecting cost recovery within three years. Loans and deposits grew sequentially, though early-stage delinquencies increased." datetime: "2026-10-22T20:26:42.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/302774080.md) - [en](https://longbridge.com/en/news/302774080.md) - [zh-HK](https://longbridge.com/zh-HK/news/302774080.md) generator: "portal-rs" --- # BayCom Q3 2026 Earnings: Margin Expansion Offset by Securities Losses BayCom Corp (NASDAQ: BCML) reported Q3 2026 net interest income of $25.6 million, up 9.2% from $23.4 million a year earlier, while diluted EPS fell to $0.10 from $0.46. Net interest margin expanded 43 basis points to 4.11%, but a $6.8 million securities-sale loss and a $589,000 preferred-equity loss reduced net income to $1.1 million. Loans and deposits grew sequentially, while credit indicators were mixed. ## Core Earnings Results Spread income improved, but the benefit did not fully reach the bottom line because noninterest income turned negative. Compared with Q2 2026, net income recovered from a $7.0 million loss as noninterest expense declined by $9.5 million, the credit-loss provision fell by $4.4 million, and net interest income increased by $1.8 million. Those gains were partly offset by a $7.3 million sequential deterioration in noninterest income. Year over year, the decline in earnings primarily reflected the securities repositioning loss and higher operating expenses. Increased net interest income and a lower credit-loss provision provided partial offsets. | Metric | Q3 2026 | Q3 2025 | Year-Over-Year Change | | --------------------------- | -------------- | ------------- | --------------------- | | Net interest income | $25.6 million | $23.4 million | +9.2% | | Provision for credit losses | $0.8 million | $3.0 million | Down $2.1 million | | Noninterest income | $(5.8) million | $2.2 million | Down $8.1 million | | Noninterest expense | $17.7 million | $15.9 million | +10.7% | | Net income | $1.1 million | $5.0 million | -78.0% | | Diluted EPS | $0.10 | $0.46 | -78.3% | | Net interest margin | 4.11% | 3.68% | +43 basis points | ## Loan and Deposit Growth Loans, net of deferred fees, increased by $77.2 million, or 3.7%, from the end of Q2 to approximately $2.2 billion. BayCom originated $146.2 million of new loans and purchased $51.8 million during the quarter, partly offset by $117.4 million of repayments. Growth was concentrated in residential, multifamily, and commercial and industrial lending. Residential loans increased by approximately $47.1 million sequentially, multifamily loans rose by $30.1 million, and commercial and industrial loans increased by $24.2 million. In contrast, owner-occupied commercial real estate declined by $10.6 million and non-owner-occupied commercial real estate fell by $12.8 million. Deposits increased by $122.3 million, or 5.6%, to $2.3 billion. Average noninterest-bearing deposits rose modestly from Q2 to $577.7 million, although they remained $39.8 million below the year-earlier level. ## Profitability and Balance Sheet Net interest margin increased from 3.95% in Q2 to 4.11%. The average yield on interest-earning assets rose by 18 basis points sequentially to 5.54%, while the average rate paid on interest-bearing liabilities increased only one basis point to 2.15%. The average loan yield reached 5.72%, up 12 basis points, as new loans were originated at higher rates. The average cost of deposits was 1.57%, compared with 1.56% in Q2 and 1.74% a year earlier. Deposit interest expense increased sequentially because of higher average interest-bearing balances, particularly money market accounts, rather than a higher average rate on interest-bearing deposits. Capital remained above regulatory thresholds for a well-capitalized bank. BayCom reported a Total Capital ratio of 14.52% and a Common Equity Tier 1 ratio of 13.39%. Its non-GAAP Tangible Common Equity ratio was 11.17%. ## Strategic Repositioning Cut Current EPS While Raising Asset Yields BayCom sold $106.8 million of available-for-sale securities with an average yield of approximately 3.79%, recognizing a $6.8 million pre-tax loss. It then purchased $109.3 million of securities at a weighted average yield of 5.01%, raising the yield on the redeployed balances by 122 basis points and shortening portfolio duration. The company also sold $7.8 million of preferred equity securities to reduce future earnings volatility. Those sales, together with negative market performance, produced a $589,000 quarterly loss. Management estimated that the securities, preferred-equity, BOLI, and staffing actions collectively reduced Q3 earnings by approximately $0.50 per share. The immediate trade-off was lower reported income in exchange for a higher prospective asset yield and a reduced interest-rate risk profile. Management expects the bond portfolio and BOLI restructuring costs to be recovered within approximately three years. After-tax unrealized losses on available-for-sale securities in accumulated other comprehensive income declined to $6.3 million from $8.1 million at the end of Q2. ## Recent Insider Transactions The detailed transaction history provided lists four purchases during the quarter and six stock grants dated July 1, 2026. The purchases totaled $461,368, while the grants were recorded at zero value; the latest ten records contained no sales. | Date | Insider | Role | Transaction | Ownership | Value | | ------------- | ---------------------- | -------------------- | ------------------ | --------- | -------- | | Aug. 21, 2026 | Robert G. LaVerne | Director | Purchase at $29.85 | Direct | $29,850 | | Aug. 20, 2026 | Robert G. LaVerne | Director | Purchase at $29.95 | Direct | $29,950 | | Aug. 10, 2026 | Christopher F. Baron | CEO | Purchase at $30.39 | Direct | $250,718 | | July 31, 2026 | Michael J. Perdue | Director | Purchase at $30.17 | Indirect | $150,850 | | July 1, 2026 | Robert G. LaVerne | Director | Stock award | Direct | $0 | | July 1, 2026 | Syvia L. Magid | Director | Stock award | Direct | $0 | | July 1, 2026 | William J. Black | Officer and Director | Stock award | Direct | $0 | | July 1, 2026 | Dennis Henry Guida Jr. | Director | Stock award | Direct | $0 | | July 1, 2026 | Bhupen B. Amin | Director | Stock award | Direct | $0 | | July 1, 2026 | Christopher F. Baron | CEO | Stock award | Direct | $0 | A separate six-month summary from the same source displayed zero purchases, creating a discrepancy with the detailed transaction history. ## Risks Investors Need to Watch - **Early-stage delinquencies increased:** Loans 30–89 days past due rose to $12.4 million from $2.2 million in Q2. The increase primarily involved four commercial real estate loans totaling $10.5 million, including an $8.5 million hotel-secured loan. - **Nonaccrual loans moved higher:** Nonaccrual loans increased to $10.5 million from $9.1 million, mainly because of a new $3.3 million commercial real estate loan. The nonperforming-loan ratio rose to 0.52% from 0.47%, although classified assets declined 11.1% to $31.7 million and quarterly net charge-offs were only $13,000. - **Operating costs remain above last year:** Noninterest expense increased 10.7% year over year, reflecting higher wages, employee insurance claims, stock compensation, and professional and legal costs. - **Deposit pricing could pressure future margins:** The cost of deposits increased only one basis point sequentially, but management cited competitive pressure and a September Federal Reserve rate increase. Faster funding-cost growth could limit the benefit from higher asset yields. ## Summary BayCom’s Q3 banking fundamentals improved through loan and deposit growth, higher asset yields, and a wider net interest margin. Reported earnings nevertheless declined sharply from the prior year because management recognized substantial losses while repositioning securities and reducing preferred-equity exposure. The main issues to monitor are whether the 122-basis-point yield improvement translates into sustained net interest income, whether higher commercial real estate delinquencies require additional reserves, and whether operating and deposit costs remain controlled. 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