| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 68.32 | 131 |
| Intrinsic value (DCF) | 25.24 | -15 |
| Graham-Dodd Method | 31.34 | 6 |
| Graham Formula | 24.27 | -18 |
BayCom Corp (NASDAQ: BCML) is a regional bank holding company operating through its subsidiary, United Business Bank, providing comprehensive financial services to small and mid-sized businesses, professionals, and individuals. Headquartered in Walnut Creek, California, BayCom offers a diverse range of banking products, including commercial real estate loans, SBA loans, treasury management, and digital banking solutions. With a network of 33 branches across California, Colorado, Washington, and New Mexico, the bank focuses on relationship-driven banking tailored to local markets. BayCom serves niche sectors such as commercial real estate, agriculture, and small business lending, positioning itself as a community-focused alternative to larger financial institutions. The company’s strategic acquisitions and organic growth have strengthened its regional footprint, particularly in high-growth markets like Denver and Seattle. As a publicly traded entity with a market cap of approximately $289 million, BayCom combines the agility of a community bank with the scalability of a regional player.
BayCom Corp presents a compelling regional banking investment with a low beta (0.55), suggesting lower volatility relative to the market. The company’s focus on commercial lending (particularly real estate and SBA loans) aligns with steady demand in its operating regions. A diluted EPS of $2.10 and a dividend yield of ~2.4% (based on a $0.80 annual dividend) offer income potential. However, risks include exposure to regional economic cycles, especially in California’s commercial real estate sector, and competitive pressures from larger banks. Net income of $23.6M on $97.1M revenue reflects healthy margins, but investors should monitor loan portfolio quality amid rising interest rates. The bank’s conservative leverage (total debt of $86.8M vs. cash of $23.4M) and positive operating cash flow ($30.4M) underscore financial stability.
BayCom’s competitive advantage lies in its hybrid model: combining localized decision-making with the operational scale of a multi-state regional bank. Its niche focus on owner-occupied commercial real estate and SBA lending differentiates it from generic community banks, while its 33-branch network provides deeper market penetration than smaller peers. The bank’s treasury management and digital services (e.g., remote deposit capture) cater to business clients, reducing reliance on commoditized retail banking. However, BayCom faces intense competition from both larger regional banks (e.g., PacWest Bancorp) with superior technology budgets and smaller community banks with hyper-localized relationships. Its expansion into Colorado and Washington diversifies geographic risk but requires execution against entrenched competitors. The bank’s efficiency ratio (not provided) would be critical to assess operational competitiveness. Strategic acquisitions, like its 2021 purchase of ABC Bancorp, have bolstered market share, but integration risks persist. Regulatory advantages as an SBA Preferred Lender provide a moat in small business financing.