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Get filing alertsBayCom swings to $7.0M Q2 loss on $10.5M executive severance, $5.2M credit provision
Filed July 23, 2026 · Period ending July 23, 2026 · ~1 min read
Key Changes
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Q2 2026 net loss of $7.0M ($0.64/share) vs. $8.2M income in Q1, driven by $10.5M one-time severance costs for three departing senior executives (including accelerated equity vesting).
Exhibit 99.1 view on EDGAR → -
high
Provision for credit losses of $5.2M (vs. $670K reversal in Q1) reflects $2.8M net charge-offs (up from $15K in Q1), loan growth, and increased reserves on certain individually evaluated loans.
Exhibit 99.1 view on EDGAR → -
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Nonperforming loans fell $6.9M to $9.8M (0.47% of loans) from sale of two nonaccrual loans ($7.7M) and one payoff ($685K), partially offset by two new CRE nonaccruals ($3.5M).
Exhibit 99.1 view on EDGAR → -
medium
Net interest margin compressed 16 bps to 3.95% from 4.11% in Q1, primarily due to absence of $1.2M non-recurring discount accretion/interest recovery (23 bps) and FHLB special dividend (5 bps).
Exhibit 99.1 view on EDGAR → -
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Loans grew $64M (3.2%) while deposits fell $95.5M (4.2%) to $2.2B; company funded gap with $25M in FHLB overnight advances.
Exhibit 99.1 view on EDGAR →
Summary
BayCom reported a $7.0 million net loss for Q2 2026, a sharp reversal from $8.2 million in net income the prior quarter. The loss was driven by $10.5 million in one-time costs related to the previously announced departures of three senior executives, including severance, accelerated equity award vesting, and employee benefits.
The company also recorded a $5.2 million provision for credit losses, reflecting $2.8 million in net charge-offs during the quarter (up from just $15,000 in Q1), loan growth, and increased reserves on certain individually evaluated loans.
On a positive note, nonperforming loans improved significantly, falling $6.9 million to $9.8 million (0.47% of total loans) through the sale of two nonaccrual loans and one payoff, though two new commercial real estate nonaccruals partially offset the improvement. Net interest margin compressed 16 basis points to 3.95%, primarily due to the absence of non-recurring items that had boosted Q1 results. The company grew loans by $64 million but saw deposits decline $95.5 million, requiring $25 million in FHLB overnight advances to fund the gap. Excluding the one-time executive costs, the quarter would have shown modest profitability, but the credit provision and margin compression signal ongoing operational challenges.
Section-by-Section Diff
Event · Exhibit 99.1
BayCom reports Q2 2026 net loss of $7.0M driven by $10.5M executive severance costs, $5.2M credit provision, and $2.8M net charge-offs.
Added in current filing · view on EDGAR →
a $5.2 million provision for credit losses, primarily reflecting loan growth, increased required reserves on certain individually evaluated loans, and the impact of $2.8 million of net charge offs during the quarter. ... Net charge-offs totaled $2.8 million for the second quarter of 2026, compared to $15,000 in the prior quarter, and $13,000 in the second quarter of 2025.
The company recorded a $5.2 million provision for credit losses in Q2 2026, compared to a $670,000 reversal in Q1 2026. The provision reflects $2.8 million in net charge-offs during the quarter (up sharply from $15,000 in Q1), loan growth, and increased specific reserves on certain individually evaluated loans. The allowance for credit losses rose to $23.0 million, or 1.11% of total loans.
Added in current filing · view on EDGAR →
Nonperforming loans decreased by $6.9 million during the quarter to $9.8 million, or 0.47% of total loans, a decrease of 36 basis points from the prior quarter-end. ... The decrease from the prior quarter-end primarily reflected the payoff of one nonaccrual loan totaling $685,000 and the sale of two nonaccrual loans totaling $7.7 million, partially offset by two new nonaccrual commercial real estate loans totaling $3.5 million.
Nonperforming loans fell $6.9 million to $9.8 million (0.47% of total loans), down from $16.7 million (0.83%) at March 31, 2026. The improvement came from one payoff ($685,000) and the sale of two nonaccrual loans ($7.7 million), partially offset by two new nonaccrual commercial real estate loans ($3.5 million). The company notes that nonperforming loans remain concentrated in commercial real estate.
Added in current filing · view on EDGAR →
Total loans increased $64 million, or 3.2%, in the quarter, with strong loan growth especially at the end of the quarter. ... Deposits decreased $95.5 million, or 4.2%, to $2.2 billion at June 30, 2026, compared to $2.3 billion at March 31, 2026
Total loans grew $64 million (3.2%) during Q2 2026, with management noting strong growth especially late in the quarter. However, deposits fell $95.5 million (4.2%) to $2.2 billion. Noninterest-bearing deposits declined $32.7 million to $576.5 million, representing 26.6% of total deposits. The company funded the gap with $25.0 million in FHLB overnight advances.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 24, 2026 · How we verify