Baycom Q4 2019 Earnings Report
Key Takeaways
BayCom Corp reported earnings of $4.6 million, or $0.39 per diluted share, for the fourth quarter of 2019. The results were impacted by acquisition-related expenses, particularly from the TIG Bancorp acquisition. The company completed the acquisition of First State Bank of Colorado during the quarter, expanding its geographic footprint.
Earnings for the fourth quarter of 2019 were $4.6 million, or $0.39 per diluted share, compared to $2.6 million, or $0.24 per diluted share, for the fourth quarter of 2018.
Net interest income increased by $1.4 million, or 8.0%, to $19.2 million for the fourth quarter of 2019 compared to the previous quarter.
Noninterest income for the fourth quarter of 2019 increased by $681,000, or 32.2%, to $2.8 million compared to the previous quarter.
Loans, net of deferred fees, totaled $1.5 billion at December 31, 2019, compared to $975.3 million at December 31, 2018, primarily due to the Uniti and TIG acquisitions.
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Baycom Revenue by Segment
Forward Guidance
BayCom expects operational synergies and enhanced performance in future quarters due to recent and pending acquisitions, along with a continued focus on expense management.
Positive Outlook
- The merger represents a complementary fit, both strategically and culturally with our business model.
- The additional scale provided by this merger and similar to our earlier bank acquisition this year of Uniti Bank, located in Southern California along with our continued focus on expense management should improve operational synergies throughout the company and enhance our performance in future quarters.
- We are also making good progress with respect to our pending acquisition of Grand Mountain Bank of Granby, Colorado which will further expand our presence in Colorado.
- With these strategic combinations, we believe United Business Bank is well-positioned to gain market share in the communities we serve while providing significant benefits to our expanded group of clients, communities, shareholders, and employees.
- We continue to actively seek out new opportunities to increase our western regional presence and add value for our clients and shareholders.
Challenges Ahead
- Expected revenues, cost savings, synergies and other benefits from our pending acquisition of GMB or our recent acquisitions of TIG and Uniti might not be realized within the expected time frames or at all and costs or difficulties relating to integration matters, including but not limited to customer and employee retention, might be greater than expected
- Future acquisitions by the Company of other depository institutions or lines of business
- Changes in general economic conditions and conditions within the securities market
- Legislative and regulatory changes
- Fluctuations in interest rates