BayCom Q2 EPS misses estimates on one-time costs

Overview

• U.S. regional bank reported Q2 net loss as adjusted EPS missed analyst expectations

• Q2 results impacted by $10.5 mln in executive transition costs and higher credit loss provision

• Nonperforming loans fell to $9.8 mln, down from $16.7 mln in prior quarter

Outlook

• Company says healthy deposit and loan pipelines position it well for coming quarters

• BayCom notes ongoing competitive pressure in deposits impacting current market conditions

Result Drivers

• EXECUTIVE TRANSITION COSTS - $10.5 mln in severance, accelerated equity vesting and benefits for departing executives drove up noninterest expense

• CREDIT LOSS PROVISION - $5.2 mln provision reflected loan growth, higher reserves on certain loans, and $2.8 mln in net charge-offs

• LOWER NET INTEREST INCOME - Decline from prior quarter due to lower interest income on loans and absence of non-recurring items

Company press release: ID:nBw5xFrmya

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for BayCom Corp is $32.00, about 3.9% below its July 22 closing price of $33.30

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• July 21 - Metropolitan Bank Q2 EPS falls on credit loss provision and one-time expenses

• July 22 - Eagle Bancorp Q2 net income falls on higher credit loss provision

• July 20 - Zions Bancorp Q2 adjusted EPS misses estimates as one-time gains lift net profit

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)