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BayCom Corp Reports 2018 Third Quarter Earnings of $3.5 Million
WALNUT CREEK, CA, October 24, 2018--(Business Wire)—BayCom Corp (the “Company”) (NASDAQ:BCML), the holding company for United Business Bank (the “Bank”), announced earnings of $3.5 million, or $0.31 per diluted share, for the third quarter of 2018 compared to $3.2 million, or $0.46 per diluted share, for the third quarter of 2017, and earnings of $4.3 million, or $0.45 per diluted share, for the second quarter of 2018. The increase in earnings during the third quarter of 2018 compared to the same quarter last year was primarily due to increases in net interest income and other non-interest income as a result of the Plaza acquisition in November 2017, and the lower effective tax rate in 2018, partially offset by the higher provision for loan losses for the third quarter 2018. The decrease in earnings during the third quarter of 2018 compared to the prior quarter was primarily due to a $838,000 increase in provision for loan losses resulting from the reclassification of one commercial real estate loan and one commercial and industrial loan to non-accrual status. The Company had net income of $11.9 million, or $1.30 per diluted common share, for the nine months ended September 30, 2018, compared to $6.1 million, or $0.97 per diluted common share, for the nine months ended September 30, 2017.
Third Quarter 2018 Performance Highlights:
|·||Total assets increased to $1.34 billion at September 30, 2018 compared to $1.19 billion at September 30, 2017 and decreased slightly compared to $1.35 billion at June 30, 2018. The increase from the prior year was the result of the Plaza Bank merger in November 2017 and organic loan growth.|
|·||Loans, net of allowance for loan losses and deferred fees, totaled $896.4 million at September 30, 2018, compared to $839.6 million at September 30, 2017 and $908.5 million at June 30, 2018.|
|·||Deposits totaled $1.13 billion at September 30, 2018 compared to $1.05 billion at September 30, 2017 and $1.14 billion at June 30, 2018. Non-interest bearing deposits represented 30.9% of total deposits at September 30, 2018 compared to 29.1% at September 30, 2017 and 30.4% at June 30, 2018.|
|·||Non-accrual loans represented 0.58% of total loans as of September 30, 2018, compared to 0.02% September 30, 2017 and 0.10% of total loans as of June 30, 2018.|
|·||The Bank remains a “well-capitalized” institution for regulatory capital purposes at September 30, 2018.|
George J. Guarini, President and Chief Executive Officer of the Company stated, “While we are disappointed to report a decline in earnings per share this quarter as a result of an increase in our provision for loan losses, we are confident that this is not a reflection of the overall credit quality of our loan portfolio. It was necessary to increase our loan loss provisions as a result of two long standing banking relationships that are experiencing cash flow problems migrating to non-accrual status during the third quarter of 2018. Our overall credit quality metrics remain strong.”
Mr. Guarini continued, “Our pending New Mexico acquisition is expected to close in the fourth quarter and we continue to actively look for new opportunities to expand our geographical market reach, build market penetration, and add value for our clients and increase earnings per share for our shareholders.”
Proposed Acquisition of Bethlehem Financial Corporation
On August 10, 2018, the Company entered into a definitive agreement (the "Agreement") with Bethlehem Financial Corporation (“BFC”), headquartered in Belin, New Mexico, pursuant to which BFC will be merged with and into BayCom Corp, and immediately thereafter BFC’s bank subsidiary, MyBank, will be merged with and into United Business Bank. MyBank serves central New Mexico through five branches operating in Belen, Rio Communities, Los Lunas, Albuquerque, and Mountainair, New Mexico. Under the terms of the Agreement, BFC shareholders will receive $62.00 in cash for each share of BFC common stock or approximately $23.5 million in aggregate.
The following information was filed by Baycom Corp (BCML) on Wednesday, October 24, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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