BCML

BayCom is a small ($2.59B-asset), 34-branch California commercial bank whose earnings have gone sideways: net income of $23.9M in FY2025 is up just 1.3% YoY and still sits below the FY2023 peak of $27.4M. Diluted EPS of $2.18 (+3.8%) is being flattered by a 2.0% shrink in the share count, not by underlying growth — total assets actually fell 2.7% and liabilities fell 3.6%, so the bank is contracting, not expanding. The tell is the 43.3% drop in cash & equivalents to $207M, consistent with the deposit/funding runoff a small bank sees in a higher-rate, competitive-deposit environment. At a 7.1% return on equity, this is a below-average earner even for a community bank.

The balance sheet is sound and the capital-return story is the main attraction. Stockholders' equity grew 4.4% to $339M and retained earnings rose 8.5% to $179M, giving a book value near $31/share against a $33.46 price — roughly 1.08x book, a modest premium that a 7.1% ROE arguably doesn't fully earn. The 6.66x liabilities/equity ratio is normal deposit-funded leverage, not stress, and Legal Proceedings disclose no material litigation. Management is paying out: the dividend nearly doubled (+95.6% to $6.60M, now $0.30/quarter, only initiated in 2022) and $6.91M went to buybacks. That combined yield supports the stock near book.