BayCom Q3 profit rebounds sequentially on lower expenses
BCML•BayCom’s third-quarter net income rose from the prior quarter but fell year over year. Net interest margin expanded to 4.11%, while net interest income was $25.56 million.
1. Quarterly results
BayCom reported higher third-quarter net income than in the prior quarter, though profit was down year over year. Net interest income was $25.56 million, and net interest margin expanded to 4.11%; loans and deposits also grew.
2. Securities repositioning
The company sold $106.8 million of investment securities at a $6.8 million loss and redeployed the proceeds into higher-yielding, shorter-duration assets. It expects the repositioned portfolio to improve yield by 122 basis points and anticipates recouping the costs in about three years. BayCom also sold $7.8 million of preferred equity securities, recording a $589,000 net loss, and incurred $192,000 in severance costs from staffing realignment.
