BayCom Q3 2026: A Deliberate EPS Miss With a Three-Year Payoff
As seen on the 24/7 Wall St. homepage on October 22, 2026.
Management chose this earnings miss, putting roughly $0.50 per share of cost on the quarter by selling securities at a loss to lift reinvested yields. Net interest margin expanded to 4.11%, revenue came in ahead of estimates, and the payback is pegged at about three years.
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BayCom posted Q3 2026 earnings of $0.10 per diluted share, missing expectations, and management made that outcome happen on purpose. The California community bank sold available-for-sale securities at a pre-tax loss, alongside losses on preferred equity sales and severance costs, which collectively shaved roughly $0.50 per share off the quarter's GAAP result.
Redeployed investment balances picked up 122 basis points of yield, and net interest margin expanded sequentially to 4.11%. That margin expansion, combined with loan growth and deposit growth at an average cost that barely budged, is the operational story management wants investors focused on.
Revenue came in at $25.56 million, ahead of estimates, even as it fell from a year ago, and net income reflects the repositioning charges rather than core business deterioration. Management pegs the payback period at roughly three years, after which the restructured portfolio is expected to support stronger, more consistent profitability.
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There are genuine risks to monitor. Nonaccrual loans rose to $10.5 million, concentrated in commercial real estate, and accruing past-due loans increased, including a hotel-secured CRE loan. Noninterest-bearing deposits also slipped as a share of total deposits, a trend worth tracking as it affects the bank's funding cost advantage.
BayCom had been posting results within a few cents of estimates before this quarter's deliberate reset. Whether the repositioning delivers on its three-year promise is the single biggest question hanging over the stock heading into Q4 2026.
Mentioned: BCML