BCML · BayCom Corp

BayCom Corp reported strong first quarter 2026 results, with net income rising 43.5% year-over-year to $8.2 million, or $0.75 per diluted share. The significant improvement was primarily driven by a $2.3 million increase in net interest income and a $1.3 million favorable swing in the provision for credit losses, which moved from a provision of $642,000 in the prior year to a net recovery of $670,000 in the current quarter. The net interest margin expanded to 4.11%, up from 3.83% a year ago, supported by higher loan yields and a decrease in the average rate paid on interest-bearing liabilities to 2.29%.

Management noted that unusual items, including additional accretion income, an FHLB special dividend, and the provision reversal, collectively boosted earnings by approximately $0.12 per share. While loan demand was challenging during the quarter, management expressed optimism regarding a stronger pipeline in April. Credit quality metrics showed mixed signals; nonperforming loans increased to 0.83% of total loans from 0.51% a year ago, while the allowance for credit losses remained robust at 1.02% of total loans. The Bank maintained its 'well-capitalized' status. Subsequent to the quarter, the Company announced an executive leadership transition, appointing Christopher Baron as President and CEO and Kevin Thompson as CFO.