BayCom Corp (BCML): BCG Matrix [Dec-2025 Updated]

You're digging into BayCom Corp's late 2025 strategic positioning, and the picture is classic regional banking: a massive, dependable Cash Cow in Commercial Real Estate, making up 85.4% of loans, is currently funding everything else. Honestly, we don't see a clear Star yet, as the 3.8% revenue growth isn't quite there, leaving high-potential areas like government lending as uncertain Question Marks. Meanwhile, smaller C&I segments and shrinking low-cost deposits are clearly lagging as Dogs, so let's dive into exactly where you should expect management to invest, hold, or prune resources next.

Background of BayCom Corp (BCML)

You're looking at BayCom Corp (BCML), which you know is the holding company for United Business Bank. This institution focuses on providing a full range of commercial and retail banking services, primarily targeting small to medium-sized businesses, professionals, and individuals across its operating footprint. The bank offers essential services like various deposit accounts, commercial and industrial loans, real estate financing, and wealth management solutions. It's definitely a regional player, operating through a network of branches in key markets including California, Nevada, Washington, New Mexico, and Colorado.

As of late 2025, the financial picture shows a company managing through a shifting rate environment. For the third quarter of 2025, BayCom Corp reported a net income of $5.0 million. This followed a stronger second quarter where net income reached $6.4 million, or $0.58 per diluted share. The company's total assets stood at approximately $2.6 billion as of June 30, 2025, with loans making up about $2.0 billion of that balance.

The operational focus has been on asset quality and shareholder returns. The net interest margin showed some fluctuation, moving from 3.83% in Q1 2025 to 3.77% in Q2 2025, reflecting the cost of deposits. Management, led by President and CEO George Guarini, has emphasized new lending activity and maintaining strong credit discipline. Credit metrics remained solid, though nonperforming loans did tick up to 0.82% of total loans by the end of Q2 2025.

BayCom Corp has been actively returning capital to shareholders. In November 2025, the Board declared a quarterly cash dividend of $0.30 per share, a 20% increase from the previous $0.25 per share. This follows earlier increases in May (to $0.20) and August (to $0.25) of 2025, showing a commitment to growing the payout. Valuation-wise, based on trailing twelve months data, the company held a P/E ratio of about 13.21 and a Price-to-Book ratio of 0.91. The trailing twelve months revenue, as of November 2025, was reported at $98.71 million.

BayCom Corp (BCML) - BCG Matrix: Stars

You're analyzing BayCom Corp (BCML) portfolio, and right now, the Star quadrant looks empty. Stars demand high market share in a rapidly expanding market, but what we see here is growth that's steady, not explosive. New lending activities, while management cites them, haven't yet translated into one segment dominating a high-growth niche. For instance, the total loan portfolio reached $2.04 billion as of September 30, 2025, up from $1.95 billion at the end of 2024. That's growth, sure, but it's spread across commercial real estate and residential loans, not concentrated in one runaway success. The first quarter of 2025 saw $72.1 million in new loan originations, which is solid activity, but it doesn't define a Star.

Here's a quick look at how the current metrics stack up against the high-growth, high-share ideal for a Star:

The company's overall revenue growth rate of 3.8% over three years is moderate, not the high-growth rate required for a Star. A Star needs to be outpacing its market significantly, and this figure suggests BayCom Corp is growing more in line with a mature, stable business, which points toward the Cash Cow quadrant if market growth slows. Honestly, a 3.8% three-year clip just doesn't scream 'market disruptor' in banking today.

No single product line currently holds a dominant, high-growth market share in the competitive Western regional banking market. The company operates 34 full-service banking branches across California, Nevada, Washington, New Mexico, and Colorado as of September 30, 2025. While this physical footprint supports its operations, it doesn't imply a monopoly or dominant share in any specific, high-growth product category within that region. The focus remains on maintaining stability, as evidenced by the Net Interest Margin hovering around 3.72% in Q3 2025.

To give you some context on the current operational snapshot:

• Net Income (Q3 2025): $5.0 million.
• Allowance for Credit Losses (Sep 30, 2025): $20.8 million.
• Nonaccrual Loans (Sep 30, 2025): $13.5 million.
• P/B Ratio (2025): 0.91.

If onboarding takes 14+ days, churn risk rises, but for BayCom Corp, if loan growth doesn't accelerate past this moderate pace, investment in new areas might not yield Star returns.

BayCom Corp (BCML) - BCG Matrix: Cash Cows

Cash Cows for BayCom Corp are anchored by the strength and maturity of its lending franchise, primarily driven by its significant concentration in Commercial Real Estate (CRE) assets, which provides reliable, high-margin cash flow to support other areas of the business.

The Commercial Real Estate (CRE) loan portfolio is the defining feature of this quadrant. As of December 31, 2024, this portfolio totaled approximately $1.7 billion, which represented 85.4% of the total loan book at that date. This high concentration in a mature asset class, while carrying inherent risk, is the engine for the bank's earnings.

This concentration is further quantified by its relationship to capital. The CRE loan exposure stood at 320.2% of total regulatory capital as of December 31, 2024. This leverage on the capital base is what allows the CRE portfolio to generate the bulk of the Net Interest Income (NII) that characterizes a strong Cash Cow.

The stability of this cash generation supports consistent capital returns to shareholders. You saw the Board declare a quarterly cash dividend of $0.30 per share in November 2025, marking a 20% increase from the previous $0.25 per share. This action, funded by core earnings, signals confidence in the ongoing profitability derived from these mature assets.

To support this massive loan book, BayCom Corp relies on a stable, low-cost funding source. The core deposit base was reported at $2.23 billion as of September 30, 2025. This low-cost funding is critical for maintaining the high Net Interest Margin (NIM) that Cash Cows require to thrive.

Here's a quick look at the key metrics defining this Cash Cow position:

• The CRE loan portfolio size was $1.7 billion at year-end 2024.
• CRE loans represented 85.4% of total loans on December 31, 2024.
• The latest declared dividend is $0.30 per share (November 2025).
• The deposit base provides low-cost funding, reported at $2.23 billion (Q3 2025).

The operational efficiency supporting this segment is key. Investments here are focused on maintaining the existing structure and improving the yield on the existing assets, rather than aggressive market expansion. For instance, the amortization of the core deposit intangible, a cost associated with acquiring these low-cost deposits, was $506 thousand for the period ending June 30, 2025.

You can see the core components that define the Cash Cow status in this table:

The focus for BayCom Corp in this area should be on disciplined underwriting to protect the asset quality, as the loan-to-value ratio for CRE loans was typically not to exceed 80% at origination, and the estimated weighted average loan-to-value ratio was 55.5% at December 31, 2024. This disciplined approach helps ensure the cash flow remains reliable.

BayCom Corp (BCML) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

The following table summarizes key metrics associated with potential Dog categories within BayCom Corp (BCML) as of mid-2025, reflecting low relative share or high volatility in performance, which aligns with the characteristics of this quadrant.

The Commercial and Industrial (C&I) loan portfolio is noted at a low internal share of approximately $182.2 million as of June 30, 2025.

The funding mix shows a clear shift away from the lowest-cost funding sources, which can represent legacy or less sticky relationships that require more active management or are candidates for minimization.

• Non-interest-bearing deposits (NIBD) declined to 27.7% of total deposits in Q1 2025.
• NIBD balance was $589.5 million at March 31, 2025.
• Total deposits stood at $2.13 billion in Q1 2025.

The non-core investment securities portfolio is characterized by volatility in noninterest income due to fair value adjustments, a hallmark of assets that do not provide stable cash flow.

For the six months ended June 30, 2025, the total noninterest income showed a year-over-year decrease of $592,000.

The equity securities component of the non-core portfolio was valued at $12.9 million as of June 30, 2025, and generated a net gain of $7,000 for the three months ended June 30, 2025.

Certain legacy or non-strategic branch locations in mature, low-growth markets outside of key metropolitan areas represent units where market share is low and growth prospects are limited, fitting the Dog profile. Specific financial data for the contribution or cost of these individual locations is not publicly itemized in the latest reports.

BayCom Corp (BCML) - BCG Matrix: Question Marks

QUESTION MARKS (high growth products (brands), low market share):

You're looking at business segments within BayCom Corp that operate in markets showing significant expansion potential but where the Bank currently holds a relatively small slice of the pie. These areas consume capital in the pursuit of future market dominance.

Specialized government-guaranteed lending, specifically the SBA 7(a) program, fits this profile. While BayCom Corp services these loans and generally retains the unguaranteed portion, which is 25% of the loan amount, the overall national market is experiencing near-record activity. For context, the national SBA 7a lending in Q2 FY2025 saw approvals exceeding $10 billion, and Q3 FY2025 followed with another $8.66 billion in approvals. BayCom Corp retains a contractual minimum of 5% on all SBA 7(a) loans serviced, with a typical servicing spread of at least 1.00%. This high-growth external environment demands investment to capture more share, or these efforts risk becoming Dogs.

Digital banking platforms and mobile applications represent a necessary, high-cash-burn investment for BayCom Corp to remain competitive against larger institutions. While the Bank offers Business Online Banking and Mobile Banking services, specific market share data against larger competitors for 2025 isn't publicly quantified, positioning these as classic Question Marks requiring heavy investment to grow share.

Expansion into new geographic markets, such as the proposed de novo branch openings in Las Vegas, Nevada, requires significant upfront capital outlay with an uncertain return profile in the near term. While the Transfer Agent for BayCom Corp is located in Las Vegas, Nevada, concrete 2025 investment figures for new branch openings are not detailed, fitting the high-investment, uncertain return characteristic of this quadrant.

Credit quality issues in specific asset classes, like Nonperforming Loans (NPLs) on Commercial Real Estate (CRE), consume management attention and capital through provisions. The NPL ratio for BayCom Corp rose to 0.82% of total loans in Q2 2025 due to several CRE placements. This necessitated an increased provision for credit losses, which rose to $3.0 million in Q3 2025, up sharply from $0.2 million in Q2 2025. Although NPLs improved sequentially to 0.68% of loans, totaling $13.9 million in Q3 2025, the required provision signals a cash drain associated with managing this segment.

Here's a snapshot of the financial pressure points related to credit quality and investment areas as of the third quarter of 2025:

The strategy here involves deciding where to deploy capital to shift these from Question Marks to Stars. For the SBA segment, this means aggressively pursuing market share in the high-volume environment. For digital platforms, it means heavy investment to close the gap with larger competitors. For the CRE NPLs, the action is managing down the risk exposure, as evidenced by the $3.0 million provision taken in Q3 2025.

Key operational metrics tied to capital deployment and return:

• Q3 2025 Net Income: $5.0 million
• Q2 2025 Net Income: $6.4 million
• Quarterly Cash Dividend Declared: $0.25 per share
• Loan Yield (Average): 5.76% in Q3 2025

These Question Marks require a clear investment thesis to justify the cash consumption.