BayCom Corp, the holding company for United Business Bank, reported net income of $1.1 million, or $0.10 per diluted common share, for the third quarter of 2026. This figure marks a significant improvement from the net loss of $7.0 million, or $(0.64) per share, recorded in the second quarter of 2026. However, it represents a decrease compared to the $5.0 million, or $0.46 per share, earned in the same period of the prior year.
The company attributed the turnaround in the current quarter to a $9.5 million reduction in noninterest expenses, largely due to a $9.8 million decrease in salaries and employee benefits. This reduction was driven by the absence of severance and accelerated equity award costs from the second quarter, which totaled $10.5 million. Additionally, a $4.4 million decrease in the provision for credit losses contributed to the earnings improvement.
Net interest income increased by $1.8 million during the quarter. The company also noted a $142,000 special dividend from the Federal Home Loan Bank of San Francisco. These gains were partially offset by a $7.3 million decrease in noninterest income, primarily due to a $6.8 million loss on the sale of available-for-sale investment securities. The company sold $106.8 million of these securities to reposition its portfolio into higher-yielding, shorter-duration assets, which is expected to improve future profitability.
On the balance sheet, total loans increased by $77.2 million, or 3.7%, to $2.2 billion. Total deposits grew by $122.3 million, or 5.6%, to $2.3 billion, with an average cost of 1.57%. The net interest margin expanded 16 basis points to 4.11%. The company also sold $7.8 million of preferred equity securities to reduce market volatility, incurring a net loss of $589,000. Furthermore, the company recorded $192,000 in severance expense related to staffing realignment actions.
Capital ratios remained strong, with the Total Capital ratio at 14.52%, the Common Equity Tier 1 ratio at 13.39%, and the Tangible Common Equity ratio at 11.17%. Classified assets declined by $3.9 million, or 11.1%, to $31.7 million at quarter-end.
