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BayCom Corp BCML

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You are paying about $330M for a California business bank that earns a third less on its book than the banks next door, and the June quarter it just reported was a loss.

The whole thing turns on whether a management team seated in April can hold a cost base it paid $10.5M to clear, because the cheap deposits that make the margin started walking out the same quarter.

BCML · price with moving averages

Daily · 6MWeekly · 3Y
$17$22$26$31$35 Sep '23Apr '24Nov '24Jun '25Jan '26Aug '26 BID
EMAs82140

Source: market data.

The business

BayCom Corp is the holding company for United Business Bank, run out of Walnut Creek with 329 employees across five western states. The asset side is close to one bet: commercial real estate is 83.8% of the loan book.

The liability side is the better business. The bank funds itself with roughly $2.2B of deposits at a blended 1.56%, about a quarter of it in accounts paying no interest at all. That funding cost, not the lending, turns an ordinary loan book into an above-average margin. The moat is the usual community-bank kind: the payroll and treasury accounts a small business owner never finds worth the afternoon it takes to move.

Inside the complete Back of Napkin

  1. 01The business
  2. 02The numbers
  3. 03Management
  4. 04How it fails or surprises you
  5. 05The shape of the payoff
  6. 06Closing thoughts
  7. 07Methodology

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