55 unchanged sentences
BayCom is a bank holding company headquartered in Walnut Creek, California.
−Removed: BayCom’s wholly owned banking subsidiary, United Business Bank, provides a broad range of financial services to businesses and business owners as well as individuals through its network of 34 full-service branches at June 30, 2025, with 16 locations in California, one in Nevada, one in Washington, five in New Mexico and 11 in Colorado.
+Added: BayCom’s wholly owned banking subsidiary, United Business Bank, provides a broad range of financial services to businesses and business owners as well as individuals through its network of 34 full-service branches at September 30, 2025, with 16 locations in California, one in Nevada, one in Washington, five in New Mexico and 11 in Colorado.
BayCom’s business activities generally are limited to passive investment activities and oversight of its investment in the Bank.
10 unchanged sentences
We strive to provide an enhanced banking experience for our clients by providing them with a comprehensive suite of sophisticated banking products and services tailored to meet their needs, while delivering the high-quality, relationship-based client service of a community bank.
−Removed: At June 30, 2025, on a consolidated basis, the Company had approximately $2.6 billion in total assets, $2.0 billion in total loans, $2.2 billion in total deposits and $330.6 million in shareholders’ equity.
+Added: At September 30, 2025, on a consolidated basis, the Company had approximately $2.6 billion in total assets, $2.0 billion in total loans, $2.2 billion in total deposits and $334.3 million in shareholders’ equity.
We continue to focus on growing our commercial loan portfolios through acquisitions as well as organic growth.
−Removed: At June 30, 2025, our $2.0 billion total loan portfolio included $261.5 million, or 13.1 %, of loans acquired through business combinations (all of which were recorded to their estimated fair values at the time of acquisition), and the remaining $1.7 billion, or 86.9%, consisted of loans we originated or purchased not as part of a business combination.
+Added: At September 30, 2025, our $2.0 billion total loan portfolio included $245.1 million, or 12.0 %, of loans acquired through business combinations (all of which were recorded to their estimated fair values at the time of acquisition), and the remaining $1.7 billion, or 86.9%, consisted of loans we originated or purchased not as part of a business combination.
The profitability of our operations depends primarily on our net interest income after provision for credit losses, which is the difference between interest earned on interest earning assets and interest paid on interest bearing liabilities less provision for credit losses.
13 unchanged sentences
Changes in market interest rates, the slope of the yield curve, and interest we earn on interest earning assets or pay on interest bearing liabilities, as well as the volume and composition of interest earning assets, interest bearing and noninterest bearing liabilities, and shareholders’ equity, usually have the most significant impact on our net interest spread, net interest margin and net interest income during a reporting period.
−Removed: During the second half of 2024, the Federal Open Market Committee (“FOMC”) of the Federal Reserve lowered the target range for the federal funds rate three times, resulting in a target range of 4.25% to 4.50%, which is where it remained at June 30, 2025.
+Added: Following a period of monetary easing that began in the second half of 2024, the Federal Open Market Committee (FOMC) of the Federal Reserve reduced the target range for the federal funds rate by a cumulative 125 basis points through September 2025, bringing the target range to 4.00% to 4.25%.
+Added: On October 29, 2025, subsequent to quarter-end, the FOMC announced a further 25 basis point cut, bringing the target range to 3.75% to 4.00%.
Noninterest income.
9 unchanged sentences
See “Critical Accounting Policies and Estimates - Allowance for Credit Losses” for a description of the manner in which the provision for credit losses is established.
−Removed: For investments, the Company evaluates available-for-sale debt securities in an unrealized loss position to determine whether the decline in the fair value below the amortized cost basis is due to credit-related factors or noncredit-related factors.
+Added: For investments, the Company evaluates available-for-sale debt securities in an unrealized loss position to determine whether the decline in the fair value below the amortized cost basis is due to credit-related factors or noncredit-
+Added: related factors.
Such situations may result from either a decline in the financial condition of the issuing entity or, in the case of fixed interest rate investments, from rising interest rates.
−Removed: In making this assessment, management considers the
−Removed: length of time and the extent to which fair value is less than amortized cost, the nature of the security, the underlying collateral, and the financial condition and prospects of the issuer, among other factors.
+Added: In making this assessment, management considers the length of time and the extent to which fair value is less than amortized cost, the nature of the security, the underlying collateral, and the financial condition and prospects of the issuer, among other factors.
This assessment also includes a determination of whether the Company intends to sell the security, or if it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis less any current-period credit losses.
7 unchanged sentences
(ii) occupancy and equipment expense;
−Removed: (iii) data processing;
+Added: (iii) data processing expense;
(iv) Federal Deposit Insurance Corporation (“FDIC”) and state assessments;
19 unchanged sentences
For a detailed discussion, refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Estimates” in the Company’s 2024 Annual Report, which was filed with the SEC on March 14, 2025.
−Removed: Comparison of Financial Condition at June 30, 2025 and December 31, 2024
+Added: `Comparison of Financial Condition at September 30, 2025 and December 31, 2024
Total assets.
−Removed: Total assets decreased $42.1 million, or 1.6%, to $2.6 billion at June 30, 2025, from December 31, 2024.
−Removed: The decrease primarily was due to a $72.4 million, or 19.9%, decline in cash and cash equivalents and a $2.2 million, or 100%, decline in loans held for sale, partially offset by a $47.4 million, or 2.4%, increase in loans receivable, net.
+Added: Total assets decreased $60.7 million, or 2.3%, to $2.6 billion at September 30, 2025, from December 31, 2024.
+Added: The decrease primarily was due to a $135.6 million, or 37.2%, decline in cash and cash equivalents
+Added: and a $1.8 million, or 841.0%, decline in loans held for sale, partially offset by a $89.4 million, or 4.6%, increase in loans receivable, net.
Cash and cash equivalents.
−Removed: Cash and cash equivalents decreased $72.4 million, or 19.9%, to $291.6 million at June 30, 2025, from $364.0 million at December 31, 2024.
−Removed: The decrease primarily was due to a $71.0 million decrease in federal funds sold and interest bearing balances in banks, as excess funds were used to fund loan growth and deposit withdrawals.
+Added: Cash and cash equivalents decreased $135.6 million, or 37.2%, to $228.4 million at September 30, 2025, from $364.0 million at December 31, 2024.
+Added: The decrease primarily was due to a $135.6 million decrease in federal funds sold and interest bearing balances in banks as excess funds were used to fund the Company’s early redemption of the remaining $63.7 million of its outstanding 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030 (“Notes”), as well as to fund loan growth and deposit withdrawals.
Investment securities available-for-sale.
−Removed: Investment securities available-for-sale decreased $8.6 million, or 4.5%, to $184.7 million at June 30, 2025 from $193.3 million at December 31, 2024.
+Added: Investment securities available-for-sale decreased $5.6 million, or 2.9%, to $187.8 million at September 30, 2025 from $193.3 million at December 31, 2024.
The decrease was primarily attributable to routine maturities, principal repayments, and calls of investment securities, partially offset by purchases of investment securities and an upward fair value adjustment related to unrealized gains on investment securities available-for-sale.
−Removed: The following table sets forth certain information regarding contractual maturities and the weighted average yields of our available for sale investment securities as of June 30, 2025.
+Added: The following table sets forth certain information regarding contractual maturities and the weighted average yields of our available for sale investment securities as of September 30, 2025.
Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.
11 unchanged sentences
Equity securities.
−Removed: Equity securities decreased $255,000, or 1.9%, to $12.9 million at June 30, 2025 from $13.1 million at December 31, 2024, primarily due to mark-to-market downward adjustments recorded during the six months ended June 30, 2025.
+Added: Equity securities increased $187,000, or 1.4%, to $13.3 million at September 30, 2025 from $13.1 million at December 31, 2024, primarily due to mark-to-market adjustments recorded during the nine months ended September 30, 2025.
Loans receivable , net.
We originate a wide variety of loans with a focus on commercial real estate (“CRE”) loans and commercial and industrial loans.
−Removed: Total loans increased $47.4 million, or 2.4%, to $2.0 billion at June 30, 2025 from $1.9 billion at December 31, 2024.
+Added: Total loans increased $89.4 million, or 4.6%, to $2.0 billion at September 30, 2025 from $1.9 billion at December 31, 2024.
The increase was due to $337.2 million of new loan originations and $24.6 million of loan purchases, partially offset by $271.6 million of loan repayments and $3.4 million of loans sold.
The following table provides information about our loan portfolio by type of loan, with purchase credit deteriorated (“PCD”) loans presented as a separate balance, at the dates presented .
+Added: September 30,
(Dollars in thousands)
7 unchanged sentences
Allowance for credit losses
−Removed: The following table shows as of June 30, 2025, the geographic distribution of our loan portfolio, by type of loan, in dollar amounts and percentages:
+Added: The following table shows as of September 30, 2025, the geographic distribution of our loan portfolio, by type of loan, in dollar amounts and percentages:
San Francisco Bay
3 unchanged sentences
(Dollars in thousands)
−Removed: June 30, 2025
+Added: September 30, 2025
Commercial and industrial
12 unchanged sentences
(1) Includes Alameda, Contra Costa, Solano, Sonoma, Marin, San Francisco, San Mateo and Santa Clara counties.
−Removed: (2) Includes loans in Sacramento and Northern California counties totaling $98.9 million and loans in Los Angeles and Orange counties totaling $541.2 million at June 30, 2025.
+Added: (2) Includes loans in Sacramento and Northern California counties totaling $88.5 million and loans in Los Angeles and Orange counties totaling $564.2 million at September 30, 2025.
At December 31, 2024, loans in Sacramento and Northern California counties and loans in Los Angeles and Orange counties totaled $86.4 million and $537.1 million, respectively.
(3) Includes loans primarily in the states of Colorado, New Mexico and Washington.
−Removed: At June 30, 2025, loans in Colorado, New Mexico and Washington totaled $133.0 million, $74.4 million and $84.1 million, respectively.
+Added: At September 30, 2025, loans in Colorado, New Mexico and Washington totaled $137.4 million, $71.5 million and $85.4 million, respectively.
At December 31, 2024, loans in Colorado, New Mexico and Washington totaled $134.9 million, $84.6 million and $83.4 million, respectively.
Acquired loans.
−Removed: As of June 30, 2025, our total loan portfolio included $261.5 million, or 13.1%, of loans acquired through business combinations (all of which were recorded at their estimated fair values as of the time of acquisition), of which $128.3 million had no remaining net premium or discount.
−Removed: As of June 30, 2025, acquired non-PCD loans totaled $123.5 million, with a remaining net premium of $1.6 million, compared to $140.6 million with a remaining net premium of $1.8 million as of December 31, 2024.
+Added: As of September 30, 2025, our total loan portfolio included $245.1 million, or 12.0%, of loans acquired through business combinations (all of which were recorded at their estimated fair values as of the time of acquisition), of which $134.4 million had no remaining net premium or discount.
+Added: As of September 30, 2025, acquired non-PCD loans totaled $110.7 million, with a remaining net premium of $1.4 million, compared to $140.6 million with a remaining net premium of $1.8 million as of December 31, 2024.
The net premium for acquired non-PCD loans includes a credit discount based on estimated losses in the acquired loans, partially offset by any premium based on market interest rates on the date of acquisition.
−Removed: As of June 30, 2025, acquired PCD loans totaled $18.0 million, with a remaining net non-credit discount of $1.3 million, compared to $24.0 million with a remaining net non-credit discount of $1.5 million as of December 31, 2024.
+Added: As of September 30, 2025, acquired PCD loans totaled $17.7 million, with a remaining net non-credit discount of $1.3 million, compared to $24.0 million with a remaining net non-credit discount of $1.5 million as of December 31, 2024.
Nonperforming assets and loans.
1 unchanged sentence
Nonperforming loans include nonaccrual loans and accruing loans 90 days or more past due.
−Removed: Nonperforming assets increased $6.9 million to $16.4 million, or 0.82% of total loans, at June 30, 2025, compared to $9.5 million, or 0.48% of total loans, at December 31, 2024.
−Removed: The Company also held no OREO at either date.
−Removed: Nonperforming loans totaled $16.4 million, or 0.82% of total loans, at June 30, 2025, compared to $9.5 million, or 0.48% of total loans, at December 31, 2024.
−Removed: The increase in nonperforming loans was primarily due to seven new commercial real estate loans (secured by various types of real estate) totaling $5.2 million being placed on nonaccrual status during the six months ended June 30, 2025, and a $2.8 million increase in loans 90 days or more past due and still accruing, which were in the process of collection.
−Removed: These increases were partially offset by payoffs of four nonaccrual loans totaling $1.9 million and one fully charged off nonaccrual loan of $105,000.
+Added: Nonperforming assets increased $4.4 million to $13.9 million, or 0.68% of total loans, at September 30, 2025, compared to $9.5 million, or 0.48% of total loans, at December 31, 2024.
+Added: The Company held no OREO at either date.
+Added: Nonperforming loans totaled $13.9 million, or 0.68% of total loans, at September 30, 2025, compared to $9.5 million, or 0.48% of total loans, at December 31, 2024.
+Added: The increase in nonperforming loans was primarily due to 11 new commercial real estate loans (secured by various types of real estate) totaling $12.2 million being placed on nonaccrual status during the nine months ended September 30, 2025, and to a lesser extent a $175,000 increase in loans 90 days or more past due and still accruing, which were in the process of collection.
+Added: These increases were partially offset by payoffs of nine nonaccrual loans totaling $5.8 million, one $3.2 million non-accrual loan returned to accrual status as the loan is current and in the process of collection, and one fully charged off nonaccrual loan of $105,000.
The rise in nonperforming loans reflects elevated credit risk primarily within the commercial and industrial and commercial real estate portfolios.
−Removed: At June 30, 2025, nonaccrual loans included $599,000 of loans 30–89 days past due and $5.3 million of loans less than 30 days past due.
−Removed: The $5.3 million of nonaccrual loans less than 30 days past due consisted of 16 loans, all of which were placed on nonaccrual due to borrower-specific financial concerns rather than delinquency.
+Added: At September 30, 2025, nonaccrual loans included $8,000 of loans 30–89 days past due and $8.4 million of loans less than 30 days past due.
+Added: The $8.4 million of nonaccrual loans less than 30 days past due consisted of 18 loans, all of which were placed on nonaccrual due to borrower-specific financial concerns, indicators of credit deterioration, and other credit related factors, which provided reasonable doubt about the full collectability of principal and interest, rather than delinquency.
At December 31, 2024, nonaccrual loans included $643,000 of loans 30–89 days past due and no loans less than 30 days past due.
−Removed: Of the nonperforming loans at June 30, 2025, approximately $610,000 were guaranteed by governmental agencies, compared to $2.0 million at December 31, 2024.
−Removed: The decrease in government-guaranteed nonaccrual loans reflects the runoff of previously guaranteed balances without comparable additions during the current six-month period.
+Added: Of the nonperforming loans at September 30, 2025, approximately $939,000 were guaranteed by governmental agencies, compared to $2.0 million at December 31, 2024.
+Added: The decrease in government-guaranteed nonaccrual loans reflects the runoff of previously guaranteed balances without comparable additions during the current nine-month period.
In general, loans are placed on nonaccrual status after being contractually delinquent for more than 90 days, or earlier, if management believes full collection of future principal and interest on a timely basis is unlikely.
13 unchanged sentences
The amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses for loans is adjusted by the same amount.
−Removed: Modified loans to borrowers experiencing financial difficulty as of June 30, 2025 and December 31, 2024, totaled $2.4 million and $2.7 million, respectively.
+Added: Modified loans to borrowers experiencing financial difficulty as of September 30, 2025 and December 31, 2024, totaled $1.4 million and $2.7 million, respectively.
All such modified loans were on nonaccrual status as of each respective reporting date.
Modified loans that are accruing and performing in accordance with their modified terms are not classified as nonperforming loans, as they continue to accrue interest and demonstrate satisfactory payment performance despite their modified terms.
−Removed: There were no such modified loans at June 30, 2025 and December 31, 2024.
−Removed: The related allowance for credit losses on individually evaluated modified loans was none and $24,000 at June 30, 2025 and December 31, 2024, respectively.
+Added: There were no such modified loans at September 30, 2025 and December 31, 2024.
+Added: The related allowance for credit losses on individually evaluated modified loans was none and $24,000 at September 30, 2025 and December 31, 2024, respectively.
The following table provides information regarding nonperforming loans, nonperforming assets and modified loans as of the dates indicated:
+Added: September 30,
(Dollars in thousands)
15 unchanged sentences
Performing modified loans to borrowers experiencing financial difficulty are neither included in nonperforming loans above nor are they included in the numerators used to calculate these ratios.
−Removed: There were no performing modified loans at June 30, 2025 or December 31, 2024.
−Removed: Interest foregone on nonaccrual loans was approximately $370,000 and $639,000 for the three and six months ended June 30, 2025, compared to $226,000 and $709,000 for the three and six months ended June 30, 2024.
−Removed: Interest income recognized on nonaccrual loans was approximately $31,000 and $66,000 for the three and six months ended June 30, 2025, and $79,000 and $86,000 for the three and six months ended June 30, 2024, respectively.
+Added: There were no performing modified loans at September 30, 2025 or December 31, 2024.
+Added: Interest foregone on nonaccrual loans was approximately $257,000 and $896,000 for the three and nine months ended September 30, 2025, compared to $397,000 and $1.1 million for the three and nine months ended September 30, 2024.
+Added: Interest income recognized on nonaccrual loans was approximately $70,000 and $136,000 for the three and nine months ended September 30, 2025, and $7,400 and $93,600 for the three and nine months ended September 30, 2024, respectively.
Allowance for credit losses for loans.
−Removed: The allowance for credit losses is determined by us on a quarterly basis, although we monitor the appropriate level of the allowance on a more frequent basis.
−Removed: We assess the allowance for credit
−Removed: losses based on three categories:
+Added: The allowance for credit losses is determined by the Company on a quarterly basis, although management monitors the appropriate level of the allowance more frequently.
+Added: We assess the allowance for credit losses based on three categories:
(i) originated loans, (ii) acquired non-PCD loans, and (iii) acquired PCD loans.
1 unchanged sentence
The computation includes elements of judgment and high levels of subjectivity.
−Removed: At June 30, 2025, the Company’s allowance for credit losses for loans was $18.7 million, or 0.94% of total loans, compared to $17.9 million, or 0.92% of total loans, at December 31, 2024.
−Removed: Management currently believes that the $18.7 million allowance for credit losses at June 30, 2025 is adequate to absorb expected credit losses inherent in the Company’s loan portfolio.
+Added: At September 30, 2025, the Company’s allowance for credit losses for loans was $20.8 million, or 1.02% of total loans, compared to $17.9 million, or 0.92% of total loans, at December 31, 2024.
+Added: Management currently believes that the $20.8 million allowance for credit losses at September 30, 2025 is adequate to absorb expected credit losses inherent in the Company’s loan portfolio.
No assurance can be given, however, that adverse economic conditions or other circumstances will not result in increased losses in the portfolio.
−Removed: The increase in the allowance for credit losses at June 30, 2025 as compared to December 31, 2024, was primarily attributable to growth in the loan portfolio, an increase in the reserve for pooled loans, an increase in the reserve for individually evaluated loans, and the replenishment of the allowance during the period.
−Removed: The increase in the reserve for pooled loans reflected changes in portfolio mix, including growth in higher-risk loan categories, changes in the risk level of one qualitative factor, as well as updated historical loss rates and modest changes in forecasted economic conditions.
−Removed: Specifically, the Company incorporated an increase in forecasted national unemployment, partially offset by improvement in projected national gross domestic product (“GDP”) at June 30, 2025, as compared to December 31, 2024.
−Removed: Both of these are key economic indicators used in estimating expected credit losses under the current expected credit loss, or CECL, model.
−Removed: Net charge-offs were $13,000 and $115,000 for the three and six months ended June 30, 2025, compared to net charge-offs of $76,000 and $3.5 million for the three and six months ended June 30, 2024, respectively.
−Removed: The significantly lower levels of net charge-offs in the current periods reflects fewer non-accrual loan charge-offs, compared to the same periods in 2024.
+Added: The increase in the allowance for credit losses at September 30, 2025 compared to December 31, 2024, was primarily attributable to growth in the loan portfolio, an increase in the reserve for pooled loans, the replenishment of the allowance during the period, and to a lesser extent, an increase in the reserve for individually evaluated loans.
+Added: The increase in the allowance for credit losses on pooled loans primarily reflected higher quantitative reserves resulting from the Company’s annual update to its CECL model methodology.
+Added: The update incorporated more recent economic data and revised segment-specific peer group comparisons, which together contributed to a higher modeled reserve level.
+Added: To a lesser extent, the increase also reflected a higher forecasted national unemployment rate, a weaker outlook for national gross domestic product and loan growth during the quarter, as well as changes in the risk level of one qualitative factor.
+Added: Specifically, the Company incorporated an increase in forecasted national unemployment and a decline in projected national gross domestic product (“GDP”) at September 30, 2025, as compared to December 31, 2024.
+Added: Both of these are key economic indicators used in estimating expected credit losses under the CECL, model.
+Added: Net charge-offs were $833,000 and $948,000 for the three and nine months ended September 30, 2025, compared to net charge-offs of $1.5 million and $5.0 million for the three and nine months ended September 30, 2024, respectively.
+Added: The lower net charge-offs primarily reflect fewer nonaccrual loan charge-offs, as well as payoffs and collections on previously nonaccrual loans.
+Added: Approximately $8.4 million of nonaccrual loans were less than 30 days past due as of September 30, 2025, and were placed on nonaccrual primarily due to borrower-specific financial concerns or elevated risk in the underlying collateral rather than payment delinquency.
+Added: The Company continues to monitor these loans closely, and certain loans may return to accrual status if the borrowers’ financial positions stabilize and full collection of principal and interest becomes probable.
The following table presents certain credit ratios at the dates and for the periods indicated and each component of the ratio’s calculations:
−Removed: At and for the six months ended June 30,
+Added: At and for the nine months ended September 30,
(Dollars in thousands)
−Removed: Allowance for credit losses for loans as a percentage of total loans outstanding at period end
−Removed: Allowance for credit losses for loans
+Added: Allowance for credit losses on loans as a percentage of total loans outstanding at period end
+Added: Allowance for credit losses on loans
Total loans outstanding
2 unchanged sentences
Total loans outstanding
−Removed: Allowance for credit losses for loans as a percentage of nonaccrual loans at period end
−Removed: Allowance for credit losses for loans
+Added: Allowance for credit losses on loans as a percentage of nonaccrual loans at period end
+Added: Allowance for credit losses on loans
Total nonaccrual loans
15 unchanged sentences
Total average loans outstanding
−Removed: As of June 30, 2025, the Company individually evaluated $18.2 million in loans, inclusive of the $13.5 million of nonperforming loans as of that date.
−Removed: Of these individually evaluated loans, $2.3 million had a specific allowance totaling $839,000 million as of June 30, 2025.
−Removed: As of December 31, 2024, the Company individually evaluated $17.4 million in loans, inclusive of the $9.2 million of nonperforming loans as of that date.
−Removed: Of these individually evaluated loans, $2.7 million had a specific allowance totaling $392,000 as of December 31, 2024.
−Removed: Management considers the allowance for credit losses for loans at June 30, 2025 to be adequate to cover losses inherent in the loan portfolio based on the assessment of the above-mentioned factors affecting the loan portfolio.
−Removed: While management believes the estimates and assumptions used in its determination of the adequacy of the allowance are reasonable, there can be no assurance that such estimates and assumptions will not be proven incorrect in the future, or that the actual amount of future losses will not exceed the amount of the established allowance for credit losses for loans or that any increased allowance for credit losses for loans that may be required will not adversely impact our financial condition and results of operations.
−Removed: A further decline in national and local economic conditions due to unemployment levels, labor shortages, the effects of inflation, a potential recession, slowed economic growth or otherwise, could result in a material increase in the allowance for credit losses for loans and may adversely affect the Company’s financial condition and results of operations.
−Removed: In addition, the determination of the amount of our allowance for credit losses for loans is subject to review by bank regulators, as part of their routine examination process, which may result in additions to our provision for credit losses based upon their judgment of information available to them at the time of their examination.
+Added: As of September 30, 2025, the Company individually evaluated $18.8 million in loans, inclusive of the $13.5 million of nonperforming loans.
+Added: Of these individually evaluated loans, $4.7 million had a specific allowance totaling $868,000 as of September 30, 2025.
+Added: As of December 31, 2024, the Company individually evaluated $17.4 million in loans, inclusive of the $9.2 million of nonperforming loans, with $2.7 million having a specific allowance totaling $392,000.
+Added: Management considers the allowance for credit losses for loans at September 30, 2025 to be adequate to cover expected credit losses inherent in the loan portfolio based on the assessment of current portfolio performance, historical loss experience, and relevant qualitative and quantitative factors, including current economic conditions and reasonable and supportable forecasts.
+Added: While management believes the estimates and assumptions used in determining the adequacy of the allowance are reasonable, actual credit losses may differ from those expected.
+Added: Changes in economic conditions, borrower performance, or other factors could result in actual losses exceeding the current allowance, which could adversely affect the Company’s financial condition and results of operations.
+Added: In addition, the methodology, assumptions, and judgments used in determining the allowance for credit losses is subject to review by bank regulators, as part of their routine examination process, which may result in adjustments to the provision for credit losses based upon information available to them at the time of their examination.
Deposits are our primary source of funding and generally consist of core deposits from the communities served by our branch and office locations.
−Removed: We offer a variety of deposit accounts with a competitive range of interest rates and terms to both consumers and businesses.
+Added: We offer a variety of deposit accounts with a competitive range of interest rates
+Added: and terms to both consumers and businesses.
Deposits include interest bearing and noninterest bearing demand accounts, savings accounts, money market accounts, certificates of deposit and individual retirement accounts.
−Removed: These accounts earn interest at rates established by management based on competitive market factors, management’s desire to increase certain product types or maturities, and in keeping with our asset/liability, liquidity and profitability objectives.
+Added: These accounts earn interest at rates established by management based on competitive market factors, management’s desire to increase certain product types or maturities, and consistent with our asset/liability, liquidity and profitability objectives.
Competitive products, competitive pricing and high touch client service are important to attracting and retaining these deposits.
−Removed: Total deposits decreased $47.4 million, or 2.1%, to $2.2 billion at June 30, 2025, compared to $2.2 billion at December 31, 2024.
−Removed: At June 30, 2025, noninterest-bearing demand deposits totaled $616.1 million, or 28.2% of total deposits, compared to $689.0 million, or 30.8% of total deposits, at December 31, 2024, representing a decrease of $72.9 million.
−Removed: Time deposits increased $432,000, while higher-costing money market accounts and lower-costing NOW and savings accounts increased $13.5 million and $11.6 million, respectively, from December 31, 2024 to June 30, 2025.
−Removed: Time deposits included no brokered deposits as of June 30, 2025, compared to $35.5 million of brokered deposits at December 31, 2024.
−Removed: The decline in total deposits compared to December 31, 2024, primarily reflects a reduction in noninterest-bearing demand deposits, partially offset by growth in interest-bearing NOW and money market accounts.
+Added: Total deposits decreased $5.9 million, or 0.3%, to $2.2 billion at September 30, 2025, compared to December 31, 2024.
+Added: At September 30, 2025, noninterest-bearing demand deposits totaled $618.1 million, or 27.7% of total deposits, compared to $689.0 million, or 30.8% of total deposits, at December 31, 2024, representing a decrease of $70.9 million.
+Added: From December 31, 2024 to September 30, 2025, interest-bearing deposits generally increased, with money market accounts increasing $55.8 million, NOW accounts increasing $9.2 million, and time deposits increasing $10.8 million.
+Added: In contrast, savings accounts declined $10.9 million during the same period.
+Added: Time deposits included no brokered deposits as of September 30, 2025, compared to $35.5 million of brokered deposits at December 31, 2024.
+Added: The overall decline in total deposits primarily reflects the reduction in noninterest-bearing demand deposits, partially offset by growth in interest-bearing deposit accounts.
The shift in deposit composition reflects continued customer migration toward interest-bearing products in response to the prevailing rate environment.
−Removed: The decrease in brokered time deposits also contributed to the overall decline in deposit balances.
−Removed: Management continues to monitor deposit mix and pricing strategies in the context of funding cost, liquidity needs, and interest rate risk.
+Added: The decrease in brokered time deposits also contributed to the net decline in deposit balances.
+Added: Management continues to monitor deposit mix and pricing strategies in the context of funding costs, liquidity needs, and interest rate risk.
We consider our deposit base to be seasoned, stable and well-diversified, and we do not have any significant industry concentrations among our non-insured deposits.
We also offer an insured cash sweep product (ICS) that allows customers to insure deposits above FDIC insurance limits.
−Removed: At June 30, 2025, our average deposit account size (excluding public funds), calculated by dividing period-end deposits by the population of accounts with balances, was approximately $61,000.
+Added: At September 30, 2025, our average deposit account size (excluding public funds), calculated by dividing period-end deposits by the population of accounts with balances, was approximately $63,000.
See “Note 17 – Commitments and Contingencies” of the Notes to Condensed Consolidated Financial Statements in this Form 10-Q for information regarding our top ten depositors.
The following table sets forth the dollar amount of deposits in the various types of deposit programs offered at the dates indicated.
+Added: September 30,
(Dollars in thousands)
7 unchanged sentences
These advances may be made pursuant to several different credit programs, each of which has its own interest rate, range of maturities and call features.
−Removed: At June 30, 2025 and December 31, 2024, we had the ability to borrow up to $581.6 million and $540.2 million, respectively, from the FHLB of San Francisco.
−Removed: At both June 30, 2025 and December 31, 2024, there were no FHLB advances outstanding.
+Added: At September 30, 2025 and December 31, 2024, we could borrow up to $595.0 million and $540.2 million, respectively, from the FHLB of San Francisco.
+Added: At both September 30, 2025 and December 31, 2024, there were no FHLB advances outstanding.
The Bank has been approved for discount window advances from the FRB of San Francisco secured by certain types of loans.
−Removed: At June 30, 2025 and December 31, 2024, we had the ability to borrow up to $440.3 million and $41.9 million, respectively, from the FRB of San Francisco.
−Removed: At both June 30, 2025 and December 31, 2024, we had no FRB of San Francisco advances outstanding.
+Added: At September 30, 2025 and December 31, 2024, we had the ability to borrow up to $43.4 million and
+Added: $41.9 million, respectively, from the FRB of San Francisco.
+Added: At both September 30, 2025 and December 31, 2024, we had no FRB of San Francisco advances outstanding.
We may also utilize Fed Funds purchased from correspondent banks as a source of short-term funding.
−Removed: At both June 30, 2025 and December 31, 2024, we had a total of $65.0 million in federal funds lines available from third-party financial institutions and no balances outstanding at these dates.
−Removed: At both June 30, 2025 and December 31, 2024, the Company had outstanding junior subordinated deferrable interest debentures, net of fair value adjustments, assumed in connection with its previous acquisitions totaling $8.7 million and $8.6 million, respectively.
−Removed: At June 30, 2025, the Company had outstanding subordinated debt, net of costs to issue, totaling $63.8 million compared to $63.7 million at December 31, 2024.
+Added: At both September 30, 2025 and December 31, 2024, we had a total of $65.0 million in federal funds lines available from third-party financial institutions and no balances outstanding at these dates.
+Added: At both September 30, 2025 and December 31, 2024, the Company had outstanding junior subordinated deferrable interest debentures, net of fair value adjustments, assumed in connection with its previous acquisitions totaling $8.7 million and $8.6 million, respectively.
+Added: At September 30, 2025, the Company had no outstanding subordinated debt, net of costs to issue compared to $63.7 million at December 31, 2024.
We are required to provide collateral for certain local agency deposits.
−Removed: At both June 30, 2025 and December 31, 2024, the FHLB of San Francisco had issued letters of credit on behalf of the Bank totaling $41.1 million, as collateral for local agency deposits.
+Added: At both September 30, 2025 and December 31, 2024, the FHLB of San Francisco had issued letters of credit on behalf of the Bank totaling $41.1 million, as collateral for local agency deposits.
Shareholders’ equity.
−Removed: Shareholders’ equity increased $6.2 million, to $330.6 million at June 30, 2025 from $324.4 million at December 31, 2024.
−Removed: The increase in shareholders’ equity primarily was due to $12.1 million of net income earned during the first six months of 2025 and $2.9 million in other comprehensive income, net of taxes, which primarily reflected changs in the unrealized gain on available-for-sale securities.
+Added: Shareholders’ equity increased $9.9 million, to $334.3 million at September 30, 2025 from $324.4 million at December 31, 2024.
+Added: The increase in shareholders’ equity primarily was due to $17.1 million of net income earned during the first nine months of 2025 and $5.0 million in other comprehensive income, net of taxes, which primarily reflected changs in the unrealized gain on available-for-sale securities.
These increases were partially offset by the repurchase of $6.1 million of Company common stock and $6.6 million of cash dividends paid or accrued during the period.
−Removed: During the six months ended June 30, 2025, the Company repurchased a total of 199,243 shares of its common stock at a total cost of $5.2 million and an average price of $25.06 per share, leaving 264,855 shares available for future
−Removed: purchases under the current stock repurchase plan.
+Added: During the nine months ended September 30, 2025, the Company repurchased a total of 232,543 shares of its common stock at a total cost of $6.1 million and an average price of $26.24 per share, leaving 231,555 shares available for future purchases under the current stock repurchase plan.
For additional information see Part II, Item 2, “Unregistered Sales of Equity Securities and Use of Proceeds.”
−Removed: Comparison of Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024
+Added: Comparison of Results of Operations for the Three and Nine months Ended September 30, 2025 and 2024
Earnings summary.
−Removed: Net income was $6.4 million for the three months ended June 30, 2025, compared to $5.6 million for the three months ended June 30, 2024, an increase of $764,000 or 13.6%.
−Removed: The increase was the result of a $865,000 increase in net interest income, a $258,000 decrease in noninterest expense, and a $30,000 increase in noninterest income, partially offset by a $357,000 increase in provision for income taxes and a $32,000 increase in provision for credit losses.
−Removed: Basic and diluted earnings per share were $0.58 for the three months ended June 30, 2025, compared to $0.50 for the three months ended June 30, 2024.
−Removed: Net income was $12.1 million for the six months ended June 30, 2025, compared to $11.5 million for the six months ended June 30, 2024, an increase of $589,000 or 5.1%.
−Removed: The increase was the result of a $1.4 million increase in net interest income and a $340,000 decrease in noninterest expense, partially offset by a $592,000 decrease in noninterest income, a $422,000 increase in provision for credit losses, and a $75,000 increase in provision for income taxes.
−Removed: Basic and diluted earnings per share were $1.09 for the six months ended June 30, 2025, compared to $1.01 for the six months ended June 30, 2024.
−Removed: Our efficiency ratio, which is calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income, was 63.85% and 64.79% for the three and six months ended June 30, 2025, compared to 67.34% and 66.49% for the three and six months ended June 30, 2024, respectively.
+Added: Net income was $5.0 million for the three months ended September 30, 2025, compared to $6.0 million for the three months ended September 30, 2024, a decrease of $1.0 million or 13.6%.
+Added: The decrease was primarily as a result of a $1.7 million increase in provision for credit losses and a $496,000 decrease in noninterest income, partially offset by a $543,000 increase in net interest income, a $128,000 decrease in noninterest expense, and a $543,000 decrease in provision for income taxes.
+Added: Basic and diluted earnings per share were $0.46 for the three months ended September 30, 2025, compared to $0.54 for the three months ended September 30, 2024.
+Added: Net income was $17.1 million for the nine months ended September 30, 2025, compared to $17.5 million for the nine months ended September 30, 2024, a decrease of $421,000 or 2.4%.
+Added: The decrease was primarily a result of a $2.2 million increase in provision for credit losses and a $1.1 million decrease in noninterest income, partially offset by a $1.9 million increase in net interest income, a $468,000 decrease in noninterest expense, and a $468,000 decrease in provision for income taxes.
+Added: Basic and diluted earnings per share were $1.55 for both the nine months ended September 30, 2025 and 2024.
+Added: Our efficiency ratio, which is calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income, was 62.15% and 63.88% for the three and nine months ended September 30, 2025, compared to 62.76% and 65.20% for the three and nine months ended September 30, 2024, respectively.
The improvement in the efficiency ratio for the three-month period was primarily driven by higher net interest income and a modest reduction in noninterest expense.
−Removed: For the six-month period, the improvement was due to a decrease in noninterest expense and a slight increase in total revenue, as higher net interest income more than offset a decline in noninterest income.
+Added: For the nine-month period, the improvement was due to a decrease in noninterest expense and a slight increase in total revenue, as higher net interest income more than offset a decline in noninterest income.
Interest income.
−Removed: Interest income for the three months ended June 30, 2025 was $33.5 million, compared to $32.4 million for the three months ended June 30, 2024, an increase of $1.1 million or 3.2%.
−Removed: Increased yields earned on interest-earning assets, along with an increase in the average balances of investment securities and loans, were the primary drivers of the increase in interest income, partially offset by a decrease in the average balance of and yield on fed funds sold and interest bearing balances in banks.
−Removed: Interest income on loans, including fees, increased $2.9 million, or 11.8%, to $28.0 million for the three months ended June 30, 2025 from $25.0 million for the three months ended June 30, 2024, due to a $133.4 million increase in the average balance of loans and a 22 basis point increase in the average loan yield.
−Removed: The average balance of loans was $2.0 billion for the second quarter of 2025, compared to $1.9 billion for second quarter of 2024.
−Removed: The average yield on loans was 5.63% for the three months ended June 30, 2025, compared to 5.41% for the second quarter of 2024.
−Removed: The increase in the average yield on loans during the current quarter, compared to the second quarter of 2024 was due to the impact of increased rates on variable rate loans, as well as new loans being originated at higher market interest rates.
−Removed: Interest income on loans for the three months ended June 30, 2025 and 2024 included $110,000 and $124,000 in accretion of the net discount on acquired loans and revenue from PCD loans in excess of discounts.
−Removed: Remaining net discounts on these acquired loans totaled $319,000 and $540,000 at June 30, 2025 and 2024, respectively.
−Removed: Interest income on loans for the three months ended June 30, 2025 and 2024, included $109,000 and $70,000, respectively, in fees related to prepayment penalties.
−Removed: Interest income on investment securities increased $225,000, or 10.3%, to $2.4 million for the three months ended June 30, 2025, compared to $2.2 million for the three months ended June 30, 2024, as a result of increases in the average yield and average balance.
−Removed: The average yield on investment securities increased 18 basis points to 4.68% for the three months ended June 30, 2025, compared to 4.50% for the three months ended June 30, 2024.
−Removed: The increase in average yield was due to higher market interest rates on newly purchased securities and rate resets on variable rate investment securities.
−Removed: The average balance of investment securities totaled $206.5 million for the three months ended June 30, 2025, compared to $195.1 million for the three months ended June 30, 2024.
−Removed: In addition, during the second quarter of 2025, we received $392,000 in cash dividends on our FRB and FHLB stock, unchanged from the second quarter of 2024.
−Removed: Interest income on federal funds sold and interest-bearing balances in banks decreased $2.1 million, or 44.1%, to $2.7 million for the three months ended June 30, 2025, compared to $4.8 million for the three months ended June 30, 2024, as a result of changes in the average yield and average balance.
−Removed: The average yield decreased 102 basis points to 4.45% for the three months ended June 30, 2025, compared to 5.47% for the three months ended June 30, 2024, reflecting the Federal Reserve’s rate reductions during the second half of 2024.
−Removed: The average balance of federal funds sold and interest-bearing balance in banks totaled $242.8 million and $354.3 million for the three months ended June 30, 2025 and 2024, respectively.
−Removed: Interest income for the six months ended June 30, 2025 was $66.1 million, compared to $64.2 million for the six months ended June 30, 2024, an increase of $1.9 million or 3.0%.
−Removed: The increase in interest income between periods reflects increases in interest income in all interest-earning asset categories, except FHLB and FRB dividends.
+Added: Interest income for the three months ended September 30, 2025 was $35.0 million, compared to $33.4 million for the three months ended September 30, 2024, an increase of $1.5 million or 4.6%.
+Added: Increased yields
+Added: earned on interest-earning assets, along with an increase in the average balance of loans, were the primary drivers of the increase in interest income, partially offset by decreases in the average balances of investment securities and fed funds sold and interest bearing balances in banks.
+Added: Interest income on loans, including fees, increased $3.0 million, or 11.4%, to $29.2 million for the three months ended September 30, 2025 from $26.2 million for the three months ended September 30, 2024, due to a $148.3 million increase in the average balance of loans and a 17 basis point increase in the average loan yield.
+Added: The average balance of loans was $2.0 billion for the third quarter of 2025, compared to $1.9 billion for the third quarter of 2024.
+Added: The average yield on loans was 5.70% for the third quarter of 2025, compared to 5.53% for the third quarter of 2024.
+Added: The increase in the average yield on loans reflected increased rates on variable rate loans, as well as new loans being originated at higher market interest rates.
+Added: Interest income on loans for the three months ended September 30, 2025 and 2024 included $155,000 and $114,000 in accretion of the net discount on acquired loans and revenue from PCD loans in excess of discounts.
+Added: Remaining net discounts on these acquired loans totaled $146,000 and $449,000 at September 30, 2025 and 2024, respectively.
+Added: Additionally, interest income on loans for the three months ended September 30, 2025 and 2024, included $119,000 and $12,000, respectively, in fees related to prepayment penalties.
+Added: Interest income on investment securities decreased $78,000, or 3.3%, to $2.3 million for the three months ended September 30, 2025, compared to $2.4 million for the three months ended September 30, 2024, as a result of decreases in the average balance, with the average yield remaining unchanged at 4.60% for both periods.
+Added: The average balance of investment securities totaled $199.8 million for the three months ended September 30, 2025, compared to $207.0 million for the three months ended September 30, 2024.
+Added: In addition, during the third quarter of 2025, we received $401,000 in cash dividends on our FRB and FHLB stock, compared to $393,000 during the third quarter of 2024.
+Added: Interest income on federal funds sold and interest-bearing balances in banks decreased $1.4 million, or 31.6%, to $3.0 million for the three months ended September 30, 2025, compared to $4.4 million for the three months ended September 30, 2024, as a result of changes in the average yield and average balance.
+Added: The average yield decreased 89 basis points to 4.44% for the three months ended September 30, 2025, compared to 5.43% for the three months ended September 30, 2024, reflecting the effects of Federal Reserve rate reductions during the second half of 2024.
+Added: The average balance of federal funds sold and interest-bearing balance in banks totaled $269.8 million and $323.6 million for the three months ended September30, 2025 and 2024, respectively.
+Added: Interest income for the nine months ended September 30, 2025 was $101.0 million, compared to $97.6 million for the nine months ended September 30, 2024, an increase of $3.4 million or 3.6%.
+Added: The increase reflects increases in interest income on loans and investment securities, partially offset by decreases in federal funds sold and interest-bearing balances in banks.
Increased yields earned on interest-earning assets, along with an increase in the average balances of loans and investment securities, were the primary drivers for the increase in interest income, partially offset by a decrease in the average balance of and yield on fed funds sold and interest bearing balances in banks.
−Removed: Interest income on loans, including fees, increased $4.8 million, or 9.6%, to $55.1 million for the six months ended June 30, 2025 from $50.3 million for six months ended June 30, 2024, primarily due to a $87.8 million increase in the average balance of loans and a 27 basis point increase in the average loan yield.
−Removed: The average balance of loans was $2.0 billion for the six months ended June 30 2025, compared to $1.9 billion for the six months ended June 30, 2024.
−Removed: The average yield on loans was 5.63% for the six months ended June 30, 2025, compared to 5.36% for the six months ended June 30, 2024.
−Removed: The increase in the average yield on loans from the same period 2024 was due to the impact of increased rates on variable rate loans as well as new loans being originated at higher market interest rates.
−Removed: Interest income on loans for the six months ended June 30, 2025 and 2024 included $315,000 and $222,000 in accretion of the net discount on acquired loans and revenue from PCD loans in excess of discounts.
−Removed: Interest income on loans for the six months ended June 30, 2025 and 2024, included $271,000 and $246,000, respectively, in fees related to prepayment penalties.
−Removed: Interest income on investment securities increased $723,000, or 17.5%, to $4.9 million for the six months ended June 30, 2025, compared to $4.1 million for the six months ended June 30, 2024.
−Removed: The average yield on investment securities increased 33 basis points to 4.70% for the six months ended June 30, 2025, compared to 4.37% for the six months ended June 30, 2024.
+Added: Interest income on loans, including fees, increased $7.8 million, or 10.2%, to $84.3 million for the nine months ended September 30, 2025 from $76.5 million for nine months ended September 30, 2024, primarily due to a $108.2 million increase in the average balance of loans and a 24 basis point increase in the average loan yield.
+Added: The average balance of loans was $2.0 billion for the nine months ended September 30 2025, compared to $1.9 billion for the nine months ended September 30, 2024.
+Added: The average yield on loans was 5.66% for the nine months ended September 30, 2025, compared to 5.42% for the nine months ended September 30, 2024.
+Added: The increase in the average yield on loans was due to the impact of increased rates on variable rate loans as well as new loans being originated at higher market interest rates.
+Added: Interest income on loans for the nine months ended September 30, 2025 and 2024 included $579,000 and $107,000 in accretion of the net discount on acquired loans and revenue from PCD loans in excess of discounts, as well as $391,000 and $259,000, respectively, in fees related to prepayment penalties.
+Added: Interest income on investment securities increased $645,000, or 9.9%, to $7.2 million for the nine months ended September 30, 2025, compared to $6.5 million for the nine months ended September 30, 2024.
+Added: The average yield on investment securities increased 22 basis points to 4.67% for the nine months ended September 30, 2025, compared to
+Added: 4.45% for the nine months ended September 30, 2024.
The increase in average yield was due to higher market interest rates on newly purchased securities.
−Removed: The average balance of investment securities totaled $208.3 million for the six months ended June 30, 2025, compared to $190.4 million for the six months ended June 30, 2024.
−Removed: In addition, during the six months ended June 30, 2025, we received $786,000 in cash dividends on our FRB and FHLB stock, down 2.8% from $808,000 received during the six months ended June 30, 2024.
−Removed: Interest income on federal funds sold and interest-bearing balances in banks decreased $3.6 million, or 40.2%, to $5.3 million for the six months ended June 30, 2025, compared to $8.9 million for the six months ended June 30, 2024, as a result of changes in the average yield and average balance.
−Removed: The average yield decreased 101 basis points to 4.46% for the six months ended June 30, 2025, compared to 5.47% for the six months ended June 30, 2024, reflecting the Federal Reserve’s rate reductions during the second half of 2024.
−Removed: The average balance totaled $241.6 million for the six months ended June 30, 2025, compared to $328.2 million for the six months ended June 30, 2024.
+Added: The average balance of investment securities totaled $205.5 million for the nine months ended September 30, 2025, compared to $196.0 million for the nine months ended September 30, 2024.
+Added: In addition, during both the nine months ended September 30, 2025 and 2024, we received $1.2 million in cash dividends on our FRB and FHLB stock.
+Added: Interest income on federal funds sold and interest-bearing balances in banks decreased $4.9 million, or 37.4%, to $8.4 million for the nine months ended September 30, 2025, compared to $13.3 million for the nine months ended September 30, 2024, as a result of changes in the average yield and average balance.
+Added: The average yield decreased 101 basis points to 4.45% for the nine months ended September 30, 2025, compared to 5.46% for the nine months ended September 30, 2024, reflecting the effects of Federal Reserve rate reductions during the second half of 2024.
+Added: The average balance totaled $251.1 million for the nine months ended September 30, 2025, compared to $326.7 million for the nine months ended September 30, 2024.
Interest expense.
−Removed: Interest expense increased $611,000, or 3.1%, to $10.3 million for the three months ended June 30, 2025, compared to $10.1 million for the three months ended June 30, 2024.
−Removed: The increase was primarily due to higher rates paid on money market deposits, as well as an increase in the average balances of money market and time deposit accounts.
−Removed: Interest expense on deposits increased $207,000, or 6.1%, to $9.2 million for the three months ended June 30, 2025, compared to $9.0 million for the same period in 2024.
−Removed: The increase was due to higher deposit rates, reflecting increased market rates and competitive pricing pressures.
−Removed: The average rate paid on money market accounts increased six basis points during the second quarter of 2025 compared to the same period in 2024, while the average rate on time deposits declined 24 basis points compared to the prior-year period.
−Removed: The average cost of all interest-bearing deposits was 2.37% for the three months ended June 30, 2025, unchanged from the same period in 2024.
−Removed: The overall average cost of deposits
−Removed: was 1.71% for the second quarter of 2025, compared to 1.69% for the second quarter of 2024.
−Removed: The average cost of total interest-bearing liabilities was 2.54% for both the three months ended June 30, 2025 and 2024.
−Removed: Total average interest-bearing liabilities increased $29.7 million, or 1.86%, to $1.6 billion for the three months ended June 30, 2025, compared to the three months ended June 30, 2024.
−Removed: The average balance of interest-bearing deposits also increased to $1.6 billion for the three months ended June 30, 2025, from $1.5 billion for the same period in 2024.
+Added: Interest expense increased $981,000, or 9.3%, to $11.5 million for the three months ended September 30, 2025, compared to $10.6 million for the three months ended September 30, 2024.
+Added: The increase was primarily due to increased interest expense on subordinated debt, which included $835,000 of amortized debt issuance costs recognized in connection with the Company’s redemption of its subordinated notes during the current quarter, and to a lesser extent, higher deposit rates, reflecting increased market rates and competitive pricing pressures.
+Added: Interest expense on deposits increased $330,000, or 3.5%, to $9.8 million for the three months ended September 30, 2025, compared to $9.4 million for the same period in 2024.
+Added: The increase was due to higher overall average deposit balances, partially offset by lower rates on time deposits.
+Added: The average rate paid on money market accounts decreased five basis points to 2.42% during the third quarter of 2025, compared to 2.47% in the same period of 2024, and the average rate on time deposits declined 34 basis points to 3.73%, compared to 4.07% for the prior-year period.
+Added: The average cost of all interest-bearing deposits was 2.41% for the three months ended September 30, 2025, compared to 2.45% for the three months ended September 30, 2024.
+Added: The overall average cost of deposits was 1.74% for the third quarter of 2025, compared to 1.75% for the third quarter of 2024.
+Added: The average cost of total interest-bearing liabilities was 2.73% for the third quarter of 2025, compared to 2.54% for the third quarter of 2024.
+Added: Total average interest-bearing liabilities increased $67.8 million, or 4.2%, to $1.7 billion for the three months ended September 30, 2025, compared to $1.6 billion for the three months ended September 30, 2024.
+Added: The average balance of interest-bearing deposits increased to $1.6 billion for the three months ended September 30, 2025, from $1.5 billion for the same period in 2024.
Within this category, the average balance of money market accounts rose $21.5 million, or 3.2%, to $685.6 million, while time deposits increased $74.0 million, or 5.1%, to $586.3 million.
−Removed: In contrast, average balances for savings and NOW accounts declined over the same period.
−Removed: The average balance of noninterest-bearing deposits decreased $15.5 million, or 2.5%, to $604.9 million for the three months ended June 30, 2025, compared to $620.5 million for the same period in 2024.
−Removed: These shift in deposit composition reflected customer preferences to allocate excess funds into higher-yielding deposit accounts.
−Removed: Interest expense on borrowings decreased $25,000, or 2.2%, to $1.1 million for the three months ended June 30, 2025, compared to the three months ended June 30, 2024.
−Removed: The average cost of total borrowings decreased to 6.00% for the three months ended June 30, 2025, compared to 6.18% for the three months ended June 30, 2024.
−Removed: The average balance of borrowings increased $251,000 to $72.4 million during the three months ended June 30, 2025, compared to $72.3 million during the three months ended June 30, 2024.
−Removed: Interest expense increased $611,000, or 3.1%, to $20.1 million for the six months ended June 30, 2025, compared to $19.4 million for the six months ended June 30, 2024.
−Removed: The increase reflects higher funding costs, primarily due to increased market rates on money market accounts and a higher average balance of money market and time deposit accounts, partially offset by a decline in the average rate paid on time deposits.
−Removed: The average rate paid on interest-bearing liabilities was 2.51% for the six months ended June 30, 2025, compared to 2.47% for the six months ended June 30, 2024.
−Removed: Total average interest-bearing liabilities increased $29.6 million, or 1.9%, to $1.6 billion for the six months ended June 30, 2025, compared to the six months ended June 30, 2024.
−Removed: Interest expense on deposits increased $663,000, or 3.8%, to $17.9 million for the six months ended June 30, 2025, compared to $17.2 million for the six months ended June 30, 2024.
+Added: In contrast, average balances for savings accounts declined over the same period.
+Added: The average balance of noninterest-bearing deposits increased $1.6 million, or 0.3%, to $617.5 million for the three months ended September 30, 2025, compared to $615.8 million for the same period in 2024.
+Added: This shift in deposit composition from noninterest-bearing demand deposits and savings accounts to interest-bearing time, NOW, and money market accounts reflects continued customer migration toward higher-yielding products in response to prevailing market rates and competitive offerings.
+Added: Interest expense on borrowings increased $650,000 or 58.4%, to $1.8 million for the three months ended September 30, 2025, compared to $1.1 million for the three months ended September 30, 2024.
+Added: The increase was primarily due to the acceleration of the amortization of deferred debt issuance costs.
+Added: The average cost of total borrowings increased to 11.4% for the three months ended September 30, 2025, compared to 6.1% for the three months ended September 30, 2024, and amortization of deferred debt issuance costs negatively impacted the average cost of interest-bearing liabilities by 19 basis points in 2025, compared to minimal impact in 2024.
+Added: The average balance of borrowings decreased $10.9 million to $61.4 million during the three months ended September 30, 2025, compared to $72.3 million during the three months ended September 30, 2024.
+Added: Interest expense increased $1.6 million, or 5.3%, to $31.6 million for the nine months ended September 30, 2025, compared to $30.0 million for the nine months ended September 30, 2024.
+Added: The increase reflects higher funding costs, primarily due to increased market rates on money market accounts and a higher average balance of money market and
+Added: time deposit accounts, partially offset by a decline in the average rate paid on time deposits, as well as an increase in interest expense on subordinated debt, which included $835,000 of amortized debt issuance costs recognized in connection with the Company’s redemption of all outstanding subordinated debt during the current quarter.
+Added: The average rate paid on interest-bearing liabilities was 2.59% for the nine months ended September 30, 2025, compared to 2.52% for the nine months ended September 30, 2024.
+Added: Total average interest-bearing liabilities increased $42.5 million, or 2.7%, to $1.6 billion for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.
+Added: Interest expense on deposits increased $992,000, or 3.87%, to $27.7 million for the nine months ended September 30, 2025, compared to $26.7 million for the nine months ended September 30, 2024.
The increase was driven by higher rates paid on money market accounts and, to a lesser extent, an increase in the average balance of time deposits and money market accounts, partially offset by a decrease in the rate paid on time deposits.
−Removed: Specifically, rates on money market accounts increased nine basis points during the six months ended June 30, 2025, compared to the same period in 2024, while rates on time deposits decreased 18 basis points .
−Removed: The average balance of money market accounts increased $28.1 million, or 4.45%, to $659.1 million for the six months ended June 30, 2025, compared to $631.0 million for the six months ended June 30, 2024.
−Removed: The average balance of time deposits increased $31.8 million, or 6.3%, to $535.2 million for the six months ended June 30, 2025, compared to $503.4 million for the same period the prior year.
−Removed: The overall average cost of deposits for the six months ended June 30, 2025 and 2024 was 1.68% and 1.62%, respectively.
−Removed: The average rate paid on all interest-bearing deposits increased five basis points to 2.35% for the six months ended June 30, 2025, compared to 2.30% for the six months ended June 30, 2024.
−Removed: The average balance of interest-bearing deposits totaled $1.5 billion for both periods.
−Removed: Meanwhile, t he average balance of noninterest-bearing deposits decreased $25.7 million, or 4.1%, to $604.3 million for the six months ended June 30, 2025 compared to $630.1 million for the six months ended June 30, 3024.
−Removed: Interest expense on borrowings decreased $52,000, or 1.00%, to $2.2 million for the six months ended June 30, 2025, compared to the six months ended June 30, 2024, due to a 131 basis point decrease in the average rate paid on junior subordinated debentures.
−Removed: The average cost of total borrowings decreased to 6.03% for the six months ended June 30, 2025, compared to 6.18% for the six months ended June 30, 2024.
−Removed: The average balance of borrowings increased $180,000 to $72.4 million during the six months ended June 30, 2025, compared to $72.3 million during the six months ended June 30, 2024.
+Added: Rates on money market accounts increased four basis points during the nine months ended September 30, 2025, compared to the same period in 2024, while rates on time deposits decreased 24 basis points .
+Added: The average balance of money market accounts increased $25.9 million, or 4.0%, to $668.0 million for the nine months ended September 30, 2025, compared to $642.1 million for the nine months ended September 30, 2024.
+Added: The average balance of time deposits increased $46.0 million, or 9.1%, to $552.4 million for the nine months ended September 30, 2025, compared to $506.4 million for the same period the prior year.
+Added: The overall average cost of deposits for the nine months ended September 30, 2025 and 2024 was 1.70% and 1.66%, respectively.
+Added: The average rate paid on all interest-bearing deposits increased two basis points to 2.37% for the nine months ended September 30, 2025, compared to 2.35% for the nine months ended September 30, 2024.
+Added: The average balance of interest-bearing deposits totaled $1.6 billion for the nine months ended September 30, 2025, compared to $1.5 billion for the nine months ended September 30, 2024.
+Added: Meanwhile, t he average balance of noninterest-bearing deposits decreased $16.6 million, or 2.7%, to $608.8 million for the nine months ended September 30, 2025 compared to $625.3 million for the nine months ended September 30, 3024.
+Added: Interest expense on borrowings increased $600,000, or 18.0%, to $3.9 million for the nine months ended September 30, 2025, compared to $3.3 million for the nine months ended September 30, 2024.
+Added: The increase was primarily due to the amortization and acceleration of deferred debt issuance costs, partially offset by a 129 basis point decrease in the average rate paid on junior subordinated debentures.
+Added: The average cost of total borrowings increased to 7.65% for the nine months ended September 30, 2025, compared to 6.15% for the nine months ended September 30, 2024.
+Added: The average balance of borrowings decreased $3.5 million to $68.7 million during the nine months ended September 30, 2025, compared to $72.3 million during the nine months ended September 30, 2024.
Net interest income and net interest margin.
−Removed: Net interest income increased $865,000, or 3.9%, to $23.2 million for the three months ended June 30, 2025, compared to $22.3 million for the three months ended June 30, 2024.
−Removed: The increase in net interest income primarily reflects increases in interest income on loans and investment securities.
−Removed: increases were partially offset by a decrease in interest income on fed funds sold and interest-bearing balances in banks, as well as higher interest expense on deposits.
−Removed: Average interest-earning assets increased $33.7 million, or 1.4%, compared to the second quarter of 2024.
−Removed: The average annualized yield on interest-earning assets was 5.45% for the three months ended June 30, 2025, representing an eight basis point increase from 5.37% for the three months ended June 30, 2024.
+Added: Net interest income increased $544,000 million, or 2.4%, to $23.4 million for the three months ended September 30, 2025, compared to $22.9 million for the three months ended September 30, 2024.
+Added: The increase in net interest income primarily reflects increases in interest income on loans, which rose by $3.0 million or 11.4%, due to higher average balances and yields.
+Added: This was partially offset by decreases in interest income on fed funds sold and interest-bearing balances in banks and investment securities, which declined by $1.5 million or 30.6%, as well as higher interest expense on deposits and subordinated debt, which increased by $1.0 million or 9.3%.
+Added: Average interest-earning assets increased $87.5 million, or 3.6%, compared to the third quarter of 2024.
+Added: The average annualized yield on interest-earning assets was 5.49% for the three months ended September 30, 2025, representing a four basis point increase from 5.45% for the three months ended September 30, 2024.
This increase reflects the repricing of adjustable-rate loans and securities to higher rates, as well as the origination of new loans and the purchase of new securities at higher rates.
−Removed: The average cost of interest-bearing liabilities remained unchanged at 2.54% for both periods.
−Removed: As a result, the annualized net interest margin improved to 3.77% for the three months ended June 30, 2025, compared to 3.69% for the same period in 2024.
−Removed: The expansion in net interest margin was primarily due to the increase in yields on interest-earning assets.
−Removed: Net interest income increased $1.3 million, or 3.0%, to $46.0 million for the six months ended June 30, 2025, compared to $44.7 million for the six months ended June 30, 2024.
−Removed: The increase was primarily driven by higher interest income on loans and investment securities, partially offset by a decrease in interest income on fed funds sold and interest-bearing balances in banks, as well as higher interest expense on deposits.
−Removed: The average annualized yield on interest-earning assets was 5.45% for the six months ended June 30, 2025, representing a 13 basis point increase from 5.32% for the six months ended June 30, 2024.
−Removed: The average cost of interest-bearing liabilities increased to 2.51%, up four basis points from 2.47% in the prior-year period.
−Removed: As a result, the annualized net interest margin improved to 3.80% for the six months ended June 30, 2025, compared to 3.71% for the same period in 2024.
−Removed: The expansion in net interest margin was primarily due to the increase in yields on interest-earning assets, which outpaced the rise in the cost of interest-bearing liabilities.
+Added: The average annualized cost of interest-bearing liabilities was 2.73% for the three months ended September 30, 2025, representing a 11 basis point increase from 2.62% for the three months ended September 30, 2024.
+Added: As a result, the annualized net interest margin declined to 3.68% for the three months ended September 30, 2025, compared to 3.73% for the same period in 2024.
+Added: The decline in the net interest margin was due to the amortization of debt issuance costs and the rate paid on interest-bearing liabilities rising faster than the yield on interest earning assets.
+Added: Net interest income increased $1.9 million, or 2.8%, to $69.5 million for the nine months ended September 30, 2025, compared to $67.6 million for the nine months ended September 30, 2024.
+Added: The increase was primarily driven by a $7.8 million, or 10.2%, increase in interest income on loans, reflecting both higher average balances and yields.
+Added: Interest income on investment securities also rose by $645,000 or 9.9%.
+Added: These increases were partially offset by a $5.0 million, or
+Added: 37.4%, decline in interest income on fed funds sold and interest-bearing balances in banks, and a $1.6 million, or 5.3%, increase in interest expense, primarily due to higher rates on subordinated debt and time deposits.
+Added: The average annualized yield on interest-earning assets was 5.47% for the nine months ended September 30, 2025, representing a 10 basis point increase from 5.37% for the nine months ended September 30, 2024.
+Added: The average cost of interest-bearing liabilities increased to 2.59%, up seven basis points from 2.52% in the prior-year period.
+Added: As a result, the annualized net interest margin improved to 3.76% for the nine months ended September 30, 2025, compared to 3.72% for the same period in 2024.
+Added: The expansion in net interest margin was primarily due to the increase in yields on interest-earning assets, which outpaced the increase in the cost of interest-bearing liabilities.
Average Balances, Interest and Average Yields/Cost.
7 unchanged sentences
Loan yields include the effect of amortization or accretion of deferred loan fees/costs and purchase accounting premiums/discounts to interest and fees on loans.
−Removed: Three months ended June 30,
+Added: Three months ended September 30,
(Dollars in thousands)
29 unchanged sentences
(4) Average balances are computed using average daily balances.
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
(Dollars in thousands)
35 unchanged sentences
Changes applicable to both volume and rate have been allocated to volume.
−Removed: Three months ended June 30,
−Removed: Six months ended June 30,
+Added: Three months ended September 30,
+Added: Nine months ended September 30,
2025 compared to 2024
17 unchanged sentences
Junior subordinated debentures, net
−Removed: Other borrowings
Total interest expense
1 unchanged sentence
Provision for credit losses.
−Removed: We recorded a provision for credit losses of $203,000 and $845,000 for the three and six months ended June 30, 2025, compared to a $171,000 and $423,000 provision for credit losses for the three and six months ended June 30, 2024.
−Removed: The provision for credit losses during the three and six months ended June 30, 2025 was primarily driven by loan growth, charge-offs during the quarter, and increased reserve on pooled loans.
−Removed: Net charge-offs totaled $115,000 for the six months ended June 30, 2025, compared to net charge-offs of $3.2 million for six months ended June 30, 2024.
−Removed: The significantly lower level of net charge-offs in the current year reflects fewer non-accrual loan charge-offs as compared to the comparable period in 2024.
+Added: We recorded a provision for credit losses of $3.0 million and $3.8 million for the three and nine months ended September 30, 2025, compared to $1.2 million and $1.7 million for the three and nine months ended September 30, 2024.
+Added: The provision for credit losses during the three and nine months ended September 30, 2025, was primarily driven by loan growth, charge-offs during the current quarter, and increased reserves on pooled loans.
+Added: Net charge-offs totaled $948,000 for the nine months ended September 30, 2025, compared to $5.0 million for nine months ended September 30, 2024.
+Added: The lower net charge-offs primarily reflect fewer nonaccrual loan charge-offs, as well as payoffs and collections on previously nonaccrual loans.
+Added: Approximately $8.4 million of nonaccrual loans were less than 30 days past due as of September 30, 2025, and were placed on nonaccrual primarily due to borrower-specific financial concerns or elevated risk in the underlying collateral rather than payment delinquency.
+Added: The Company continues to monitor these loans closely, and certain loans may return to accrual status if the borrowers’ financial positions stabilize and full collection of principal and interest becomes probable.
Noninterest income.
−Removed: Noninterest income increased $30,000, or 2.0%, to $1.5 million for the second quarter of 2025, compared to the same period in 2024.
−Removed: The increase in noninterest income was primarily due to a $328,000 decrease in loss on equity securities as a result of positive fair value adjustments on these securities due to changes in market conditions and a $179,000 increase in loan servicing and other fees due to higher loan origination volumes, partially offset by a $233,000 decrease in gain on sale of loans resulting from lower loan sale volumes and a $298,000 increase in loss on investment in SBIC fund due to losses in the underlying SBIC fund’s investments.
−Removed: Noninterest income decreased $592,000, or 16.7%, to $3.0 million for the six months ended June 30, 2025, compared to $3.5 million for the six months ended June 30, 2024.
−Removed: The decrease in noninterest income was due to $500,000 increase in loss on equity securities as a result of negative fair value adjustments on these securities due to changes in market conditions and a $377,000 increase in loss on investment in SBIC fund due to losses in the underlying SBIC fund’s investments, partially offset by a $285,000 increase in service charges and other fees due to more customer deposits placed in CDARS and ICS money market product services via the IntraFi Network.
+Added: Noninterest income decreased $497,000, or 18.1%, to $2.2 million for the third quarter of 2025, compared to $2.7 million for the third quarter of 2024.
+Added: The decrease was primarily due to a $649,000 decrease in gain on equity securities as a result of positive fair value adjustments on these securities due to changes in market conditions, a $73,000 decrease in service charges and other fees, and a $78,000 decrease in other income and fees.
+Added: These decreases were partially offset by a $224,000 decrease in loss on investment in SBIC fund and a $79,000 increase in loan servicing and other fees.
+Added: Noninterest income decreased $1.1 million or 17.3%, to $5.2 million for the nine months ended September 30, 2025, compared to $6.3 million for the nine months ended September 30, 2024.
+Added: The decrease in noninterest income was primarily due to a $1.1 million decrease in gain on equity securities as a result of positive fair value adjustments on these securities due to changes in market conditions, a $153,000 increase in loss on investment in SBIC fund, and a $114,000
+Added: decrease in other income and fees, partially offset by a $212,000 increase in service charges and other fees and a $151,000 increase in loan servicing and other loan fees.
The following table presents the key components of noninterest income for the periods indicated:
−Removed: Three months ended June 30,
+Added: Three months ended September 30,
(Dollars in thousands)
Gain on sale of loans
−Removed: Gain (loss) on equity securities
+Added: Gain on equity securities
Service charges and other fees
Loan servicing and other loan fees
−Removed: (Loss) income on investment in SBIC fund
+Added: Loss on investment in SBIC fund
Other income and fees
Total noninterest income
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
(Dollars in thousands)
Gain on sale of loans
−Removed: (Loss) gain on equity securities
+Added: Gain on equity securities
Service charges and other fees
Loan servicing and other loan fees
−Removed: (Loss) income on investment in SBIC fund
+Added: Loss on investment in SBIC fund
Other income and fees
2 unchanged sentences
Noninterest expense.
−Removed: Noninterest expense decreased $258,000, or 1.6%, to $15.8 million for the three months ended June 30, 2025, compared to $16.0 million for the three months ended June 30, 2024.
−Removed: The decrease in noninterest expense was primarily due to a $657,000 decrease in other expense due to a reduction in legal and professional service costs as well as the return of unused California Capital Access Program (CalCap) reserve funds.
−Removed: Excess CalCap funds returned to the Bank from a loss reserve account previously established in connection with the CalCap program, which is designed to support small business lending by requiring contributions to a reserve fund that covers potential loan losses.
−Removed: These funds were no longer needed due to strong loan performance and were returned to the Bank.
−Removed: The decrease in other expense was partially offset by a $263,000 increase in data processing expense due to newly implemented services in 2025, and an $86,000 increase in salaries and wages.
−Removed: Noninterest expense decreased $340,000 million, or 1.1%, to $31.7 million for the six months June 30, 2025 compared to $32.1 million for the six months ended June 30, 2024.
−Removed: The decrease in noninterest expense was primarily due to $720,000 decrease in other expense due to a reduction in legal and professional service costs, a reduction in FDIC insurance costs and a lower level of fraudulent check losses, as well as the return of unused CalCap reserve funds, partially offset by a $363,000 increase in data processing expense due to newly implemented services in 2025.
+Added: Noninterest expense decreased $128,000, or 0.8%, to $16.0 million for the three months ended September 30, 2025, compared to $16.1 million for the three months ended September 30, 2024.
+Added: The decrease was primarily due to a $726,000 decrease in other expense and a $66,000 decrease in occupancy and equipment expense.
+Added: The decrease in other expense was due to lower legal and professional service costs, reduced deposit premium amortization, and lower default related expenses.
+Added: In addition, $400,000 in excess funds were returned to the Bank in the current quarter from a loss reserve account previously established under the California Capital Access Program (CalCAP), which supports small business lending by requiring contributions to a reserve fund that covers potential loan losses.
+Added: These funds were no longer needed due to strong loan performance.
+Added: No unused CalCAP funds were returned in the same quarter a year ago.
+Added: These decreases were offset by a $599,000 increase in salaries and wages, resulting from higher incentive compensation and increased base wages, and a $65,000 increase in data processing expense.
+Added: Noninterest expense decreased $468,000 million, or 1.0%, to $47.7 million for the nine months September 30, 2025 compared to $48.2 million for the nine months ended September 30, 2024.
+Added: The decrease in noninterest expense was primarily due to $1.4 million decrease in other expense due to return of unused CalCAP reserve funds, as discussed above, a reduction in legal and professional service costs, a reduction in FDIC insurance costs and a lower level of fraudulent check losses, partially offset by a $584,000 increase in salaries and wages, resulting from higher incentive compensation and increased base wages, and a $428,000 increase in data processing expense due to newly implemented services in 2025.
The following table details the components of noninterest expense for the periods indicated:
−Removed: Three months ended June 30,
+Added: Three months ended September 30,
(Dollars in thousands)
3 unchanged sentences
Total noninterest expense
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
(Dollars in thousands)
4 unchanged sentences
Income taxes.
−Removed: The provision for income taxes increased $357,000, or 17.9%, to $2.4 million for the three months ended June 30, 2025, compared to $2.0 million for the three months ended June 30, 2024, due to higher taxable income.
−Removed: The provision for income taxes increased $75,000, or 1.8%, to $4.3 million for the six months ended June 30, 2025 compared to the six months ended June 30, 2024.
−Removed: The Company’s effective tax rate was 27.0% and 26.5% for the three and six months ended June 30, 2025 and 26.3% and 27.09% for the three and six months ended June 30, 2024, respectively.
−Removed: The effective tax rate was lower for the six months ended June 30, 2025, compared to the same period in 2024, due to higher low income housing tax credits .
+Added: The provision for income taxes decreased $543,000, or 23.9%, to $1.7 million for the three months ended September 30, 2025, compared to $2.3 million for the three months ended September 30, 2024.
+Added: The provision for income taxes decreased $421,000, or 2.4%, to $6.1 million for the nine months ended September 30, 2025 compared to $6.5 million for the nine months ended September 30, 2024.
+Added: These decreases primarily were due to lower taxable income.
+Added: The Company’s effective tax rate was 25.7% and 26.2% for the three and nine months ended September 30, 2025, compared to 27.4% and 27.2% for the three and nine months ended September 30, 2024, respectively.
+Added: The effective tax rate decreased for the three and nine months ended September 30, 2025, compared to the same periods in 2024, primarily due to greater low income housing tax credits in the current quarter .
Liquidity and Capital Resources
4 unchanged sentences
Our primary sources of funds are deposits, escrow and custodial deposits, principal and interest payments on loans and proceeds from sales of loans.
−Removed: During the six months ended June 30, 2025, the Bank sold $3.4 million in loan participation interests and received $199.8 million in principal loan repayments.
+Added: During the nine months ended September 30, 2025, the Bank sold $3.4 million in loan participation interests and received $271.6 million in principal loan repayments.
While maturities and scheduled amortizations of loans are generally predictable sources of funds, deposit flows and loan prepayments are greatly influenced by market interest rates, economic conditions, and competition.
−Removed: Deposits decreased $47.4 million to $2.2 billion and liquid assets, in the form of cash and cash equivalents and time deposit in banks, decreased $72.4 million to $291.6 million at June 30, 2025 from $364.3 million at December 31, 2024.
−Removed: In addition, investment securities available-for-sale decreased $8.6 million to $184.7 million at June 30, 2025 from $193.3 million at December 31, 2024.
+Added: Deposits decreased $6.0 million to $2.2 billion and liquid assets, in the form of cash and cash equivalents and time deposit in banks, decreased $135.8 million to $228.4 million at September 30, 2025 from $364.3 million at December 31, 2024.
+Added: In addition, investment securities available-for-sale decreased $8.6 million to $187.8 million at September 30, 2025 from $193.3 million at December 31, 2024.
Management believes that our securities portfolio is of high quality and that the securities would therefore be marketable.
−Removed: Securities purchased during the six months ended June 30, 2025 were $3.6 million, while securities repayments, maturities and sales during that period were $ 16.2 million.
−Removed: Certificates of deposit scheduled to mature in one year or less at June 30, 2025, totaled $464.4 million.
+Added: Securities purchased during the nine months ended September 30, 2025 were $11.6 million, while securities repayments, maturities and sales during that period were $24.7 million.
+Added: Certificates of deposit scheduled to mature in one year or less at September 30, 2025, totaled $460.9 million.
It is management’s policy to maintain deposit rates that are competitive with other local financial institutions.
1 unchanged sentence
In addition to these primary sources of funds, management has several secondary sources available to meet potential funding requirements.
−Removed: As of June 30, 2025, the Bank had an available borrowing capacity of $581.6 million with the FHLB of San Francisco, with no borrowings outstanding at that date or at December 31, 2024.
−Removed: At June 30, 2025, we had the ability to borrow up to $40.3 million from the FRB of San Francisco, with no borrowings outstanding at that date.
+Added: As of September 30, 2025, the Bank had an available borrowing capacity of $595.0 million with the FHLB of San Francisco, with no borrowings outstanding at that date or at December 31, 2024.
+Added: At September 30, 2025, we had the ability to borrow up to $43.4 million from the FRB of San Francisco, with no borrowings outstanding at that date.
The Bank also had, as of that date, federal funds lines with four correspondent banks, with available commitments totaling $65.0 million.
−Removed: There were no amounts outstanding under these facilities at June 30, 2025 and December 31, 2024.
+Added: There were no amounts outstanding under these facilities at September 30, 2025 and December 31, 2024.
Subject to market conditions, we expect to utilize these borrowing facilities from time to time in the future to fund loan originations and deposit withdrawals, to satisfy other financial commitments, repay maturing debt and to take advantage of investment opportunities to the extent feasible.
5 unchanged sentences
We use our sources of funds primarily to meet our ongoing commitments, to pay maturing deposits and fund withdrawals, and to fund loan commitments.
−Removed: At June 30, 2025, loan commitments and letters of credit totaled $65.9 million, including $7.5 million of undisbursed construction and development loan commitments.
+Added: At September 30, 2025, loan commitments and letters of credit totaled $76.8 million, including $5.4 million of undisbursed construction and development loan commitments.
For information regarding our commitments, see “Note 17 – Commitments and Contingencies” of the Notes to Condensed Consolidated Financial Statements included in “Item 1.
2 unchanged sentences
cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.
−Removed: Net cash provided by operating activities for the six months ended June 30, 2025 and 2024 was $15.6 million and $12.8 million, respectively.
−Removed: During the six months ended June 30, 2025, net cash used in investing activities was $33.8 million, which consisted primarily of loan fundings and purchases of loans and investment securities, partially offset by proceeds from maturities, repayments and calls of investment securities AFS and normal recuring loan payments and maturities, compared to $39.4 million of net cash provided by investing activities for the six months ended June 30, 2024.
−Removed: Net cash used in financing activities for the six months ended June 30, 2025 was $54.2 million, which was comprised primarily of decrease in noninterest and interest bearing deposits in banks, net, stock repurchases and dividend payments to shareholders, compared to $31.5 million of net cash provided by financing activities during the six months ended June 30, 2024.
+Added: Net cash provided by operating activities for the nine months ended September 30, 2025 and 2024 was $23.0 million and $22.4 million, respectively.
+Added: During the nine months ended September 30, 2025, net cash used in investing activities was $78.0 million, which consisted primarily of loan fundings and purchases of loans and investment securities, partially offset by proceeds from maturities, repayments and calls of investment securities AFS and normal recuring loan payments and maturities, compared to $19.4 million of net cash used in investing activities for the nine months ended September 30, 2024.
+Added: Net cash used in financing activities for the nine months ended September 30, 2025 was $80.6 million, which was comprised primarily of the redemption of all of the outstanding Notes, a decrease in noninterest and interest bearing deposits in banks, net, stock repurchases and dividend payments to shareholders, partially offset by an increase in time deposits, net, compared to $9.3 million of net cash used in financing activities during the nine months ended September 30, 2024.
Management believes our capital sources are adequate to meet all reasonably foreseeable short-term and long-term cash requirements.
2 unchanged sentences
BayCom Corp is a separate legal entity from the Bank and must provide for its own liquidity.
−Removed: At June 30, 2025, BayCom Corp had liquid assets of $12.9 million.
−Removed: In addition to its operating expenses, BayCom Corp is responsible for paying to its shareholders any dividends that have been declared, funding stock repurchases, and making payments on its junior subordinated debentures and subordinated notes.
+Added: At September 30, 2025, BayCom Corp had liquid assets of $11.1 million.
+Added: In addition to its operating expenses, BayCom Corp is responsible for paying to its shareholders any dividends that have been declared, funding stock repurchases, and making payments on its junior subordinated debentures.
BayCom Corp can receive dividends and other capital distributions from the Bank, although there are regulatory restrictions on the ability of the Bank to pay dividends and make other capital distributions.
−Removed: On May 31, 2025, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.20 per share on the Company’s outstanding common stock, which was paid on July 10, 2025 to shareholders of record as of the close of business on June 12, 2025.
+Added: On August 21, 2025, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.25 per share on the Company’s outstanding common stock, which was paid on September 11, 2025 to shareholders of record as of the close of business on October 9, 2025.
The Company expects to continue to pay quarterly cash dividends on its common stock, subject to the Board of Directors’ discretion to modify or terminate this practice at any time and for any reason without prior notice.
−Removed: Assuming continued payment of the cash dividend at this rate of $0.20 per share, our average total dividend paid each quarter would be approximately $2.2 million based on the number of our outstanding shares at June 30, 2025.
+Added: Assuming continued payment of the cash dividend at the rate of $0.25 per share, our average total dividend paid each quarter would be approximately $2.7 million based on the number of our outstanding shares at September 30, 2025.
The dividends we pay may be limited as more fully discussed under “Business – Supervision and Regulation – BayCom Corp – Dividends” and “– Regulatory Capital Requirements” contained in “Part I.
3 unchanged sentences
Stock repurchases also provide us with shares of common stock necessary to satisfy obligations related to stock compensation awards.
−Removed: In May 2024, our Board of Directors announced a new stock repurchase program, to commence following completion of the then-existing stock repurchase program (which was completed during the quarter ended June 30, 2024), for the repurchase of up to 560,000 shares, or approximately 5.0% of the Company’s outstanding common stock, over a one- year period.
−Removed: Purchases under the Company’s stock repurchase programs may be made through open market purchases, privately negotiated transactions, or otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934.
−Removed: The repurchase programs may be suspended, terminated, or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate.
−Removed: The Company’s stock repurchase programs do not obligate the Company to purchase any particular number of shares.
−Removed: As of June 30, 2025, there remained 264,855 shares available for repurchase under the Company’s current stock repurchase program.
+Added: As of September 30, 2025, there remained 231,555 shares available for repurchase under the Company’s current
+Added: stock repurchase program.
For additional information on the Company’s stock repurchases, see “Item 2.
6 unchanged sentences
Consistent with our goal to operate a sound and profitable organization, our policy is for the Bank to maintain “Well Capitalized” status under the Federal Reserve regulations.
−Removed: Based on capital levels at June 30, 2025 and December 31, 2024, the Bank was considered Well Capitalized at both of those dates.
+Added: Based on capital levels at September 30, 2025 and December 31, 2024, the Bank was considered Well Capitalized at both of those dates.
The table below shows the capital ratios under the Basel III capital framework as of the dates indicated:
−Removed: At June 30, 2025
+Added: At September 30, 2025
At December 31, 2024
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In addition to the minimum capital ratios, the Bank must maintain a capital conservation buffer consisting of additional Common Equity Tier 1 capital greater than 2.5% above the required minimum levels in order to avoid limitations on paying dividends, engaging in share repurchases, and paying discretionary bonuses based on percentages of eligible retained income that could be utilized for such actions.
−Removed: At June 30, 2025, the Bank’s Common Equity Tier 1 capital exceeded the required capital conservation buffer.
+Added: At September 30, 2025, the Bank’s Common Equity Tier 1 capital exceeded the required capital conservation buffer.
For a bank holding company with less than $3.0 billion in assets, the capital guidelines apply on a bank-only basis and the Federal Reserve expects the holding company’s subsidiary bank(s) to be Well Capitalized under the prompt corrective action regulations.
−Removed: If the Company were subject to regulatory guidelines for bank holding companies with $3.0 billion or more in assets, at June 30, 2025, the Company would have exceeded all regulatory capital requirements.
+Added: If the Company were subject to regulatory guidelines for bank holding companies with $3.0 billion or more in assets, at September 30, 2025, the Company would have exceeded all regulatory capital requirements.
For additional information, see “Item 1.
2 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.