BayCom (BCML) risk factors, FY2025 10-K

BayCom's FY2025 10-K, filed Mar 16, 2026, lists 39 risk factors in 8 groups. Against the prior year's 38: 2 new, 1 dropped, 18 substantially reworded.

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Risk factors listed
398 groups
New this year
2vs 38 last year
Dropped
1since the prior 10-K
Substantially reworded
18of those kept
Section length
10k wordsItem 1A

What the changes say

  • BayCom Corp highlights commercial real estate loan growth, interest rate sensitivity, and concentrated labor union deposits as key risk drivers.

What changed since the prior 10-K

New

  • NewRisks Related to Our Lending Activities

    commercial real estate loans includes $310.3 million of multifamily loans and $9.0 million of commercial construction and land loans

    Commercial real estate loans reached $310.3 million in multifamily and $9.0 million in construction, carrying balloon payment and refinancing risks.

  • NewRisks Related to Market and Interest Rate Changes

    Rising rates can also increase the cost of deposits and other funding sources. If deposit and borrowing rates rise faster than loan and investment yields, our net interest income and overall earnings could decline

    Rising funding costs and $1.0 billion in loans with interest rate floors could compress net interest margins if borrowing rates outpace yields.

Dropped

  • DroppedRisks Related to Our Lending Activities

    Wildfires present significant risks to our loan portfolio and the adequacy of our allowance for credit losses

Reworded

  • 100% rewrittenRisks Related to Regulatory and Compliance Matters

    If our enterprise risk management framework is not effective at mitigating risk and loss to us, we could suffer unexpected losses

    Expanded risk management scope to explicitly include cybersecurity and climate-related risks alongside traditional banking risks.

  • 98% rewrittenRisks Related to Macroeconomic Conditions

    Monetary policy, inflation, deflation, and other external economic factors could adversely impact our financial performance and operations

    Added U.S. Treasury policies and trade tariffs alongside Federal Reserve actions as external economic factors affecting loan repayment.

  • 95% rewrittenRisks Related to Our Lending Activities

    Many of our loans are to commercial borrowers, which have a higher degree of risk than other types of loans

    Updated total commercial loan figures to $2.0 billion as of December 31, 2025, representing 86.8% of total loans.

  • 87% rewrittenRisks Related to Market and Interest Rate Changes

    We principally manage interest rate risk by managing our volume and mix of earning assets and funding liabilities. If we are unable to manage this risk effectively, our business, financial condition and results of operations could be materially affected

    Clarified that floating-rate assets reprice faster than deposits, potentially reducing net interest income in falling rate environments.

    Was: We principally manage interest rate risk by managing our volume and mix of our earning assets and funding liabilities. If we are unable to manage this risk effectively, our business, financial condition and results of operations could be materially affected

  • 84% rewrittenRisks Related to Cybersecurity, Third Parties and Technology

    We are subject to certain risks in connection with our data management or aggregation

    Added potential impacts on financial reporting, regulatory compliance, and strategic initiatives resulting from data aggregation deficiencies.

  • 61% rewrittenRisks Related to Cybersecurity, Third Parties and Technology

    We are subject to certain risks in connection with our use of technology

    Specified that cyber-attacks could result in the loss or exposure of sensitive information and operational disruptions.

  • 53% rewrittenRisks Related to Accounting Matters

    We are subject to an extensive body of accounting rules and best practices. Periodic changes to such rules may change the treatment and recognition of critical financial line items and affect our profitability

    Added that accounting standard changes may require enhanced judgments, new internal controls, or increased compliance costs.

  • 47% rewrittenRisks Related to Our Business and Industry Generally

    Several of our large depositors have relationships with each other, which creates a higher risk that one client’s withdrawal of its deposit could lead to a loss of deposits from other clients within the relationship, which, in turn, could force us to fund our business through more expensive and less stable sources

    Updated top ten depositor concentration to $235.8 million (11.7% of total deposits) and labor union deposits to $590.9 million (26.7%).

    Was: Several of our large depositors have relationships with each other, which creates a higher risk that one client’s withdrawal of its deposit could lead to a loss of other deposits from clients within the relationship, which, in turn, could force us to fund our business through more expensive and less stable sources

  • 44% rewrittenRisks Related to Macroeconomic Conditions

    Our business may be adversely affected by downturns in the national economy and the regional economies in which we operate

  • 41% rewrittenRisks Related to Regulatory and Compliance Matters

    Climate change and related legislative and regulatory initiatives may materially affect the Company’s business and results of operations

  • 35% rewrittenRisks Related to Our Business and Industry Generally

    Ineffective liquidity management could adversely affect our financial results and condition

  • 35% rewrittenRisks Related to Our Lending Activities

    Additionally, changes to the SBA program, such as adjustments to federal guaranty levels, program eligibility requirements, or funding allocations, including as a result of legislative, budgetary, or policy changes, could adversely impact our business, results of operations, and financial condition

    Was: Additionally, changes to the SBA program, such as adjustments to federal guaranty levels or funding allocations, could adversely impact our business, results of operations, and financial condition

  • 35% rewrittenRisks Related to Our Lending Activities

    Our allowance for credit losses may prove to be insufficient to absorb losses in our loan portfolio

  • 29% rewrittenRisks Related to Our Lending Activities

    Nonperforming assets take significant time to resolve and adversely affect our results of operations and financial condition and could result in further losses in the future

  • 28% rewrittenRisks Related to Regulatory and Compliance Matters

    We operate in a highly regulated environment and may be adversely affected by changes in federal and state laws and regulations that could increase our costs of operations

  • 28% rewrittenRisks Related to Our Lending Activities

    Agricultural lending and volatility in government regulations may adversely affect our financial condition and results of operations

  • 23% rewrittenRisks Related to Our Business and Industry Generally

    Scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks

    Was: Increasing scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks

  • 22% rewrittenRisks Related to Our Lending Activities

    Construction and land development loans totaled $9.0 million, or 0.4% of total loans as of December 31, 2025, nearly all of which were commercial real estate construction loans

    Was: Construction and land development loans totaled $1.5 million, or 0.1% of total loans as of December 31, 2024, nearly all of which were commercial real estate construction loans

All 39 risk factors

Headings as the filing states them, in filing order.

Risks Related to Macroeconomic Conditions

  1. 01Our business may be adversely affected by downturns in the national economy and the regional economies in which we operate44% rewritten
  2. 02Monetary policy, inflation, deflation, and other external economic factors could adversely impact our financial performance and operations98% rewritten

Risks Related to Our Lending Activities

  1. 03Nonperforming assets take significant time to resolve and adversely affect our results of operations and financial condition and could result in further losses in the future29% rewritten
  2. 04Many of our loans are to commercial borrowers, which have a higher degree of risk than other types of loans95% rewritten
  3. 05commercial real estate loans includes $310.3 million of multifamily loans and $9.0 million of commercial construction and land loansNew
  4. 06Construction and land development loans totaled $9.0 million, or 0.4% of total loans as of December 31, 2025, nearly all of which were commercial real estate construction loans22% rewritten
  5. 07Our business may be adversely affected by credit risk associated with residential property
  6. 08Agricultural lending and volatility in government regulations may adversely affect our financial condition and results of operations28% rewritten
  7. 09The success of our SBA lending program is dependent upon the continued availability of SBA loan programs, our status as a preferred lender under the SBA loan programs and our ability to comply with applicable SBA lending requirements
  8. 10Additionally, changes to the SBA program, such as adjustments to federal guaranty levels, program eligibility requirements, or funding allocations, including as a result of legislative, budgetary, or policy changes, could adversely impact our business, results of operations, and financial condition35% rewritten
  9. 11To meet our growth objectives, we may originate or purchase loans outside our market areas, which could affect the level of our net interest margin and nonperforming loans
  10. 12Our allowance for credit losses may prove to be insufficient to absorb losses in our loan portfolio35% rewritten

Risks Related to Market and Interest Rate Changes

  1. 13Our profitability is vulnerable to interest rate fluctuations
  2. 14We principally manage interest rate risk by managing our volume and mix of earning assets and funding liabilities. If we are unable to manage this risk effectively, our business, financial condition and results of operations could be materially affected87% rewritten
  3. 15Rising rates can also increase the cost of deposits and other funding sources. If deposit and borrowing rates rise faster than loan and investment yields, our net interest income and overall earnings could declineNew
  4. 16We may incur losses on our securities portfolio as a result of increases in interest rates

Risks Related to our Merger and Acquisition Strategy

  1. 17Our strategy of pursuing acquisitions exposes us to financial, execution, compliance and operational risks that could have a material adverse effect on our business, financial condition, results of operations and growth prospects
  2. 18Challenges related to the conversion and integration of financial and client data
  3. 19Any expansion into new markets or new lines of business might not be successful

Risks Related to Accounting Matters

  1. 20We may experience future goodwill impairment, which could reduce our earnings
  2. 21Our reported financial results depend on management’s selection of accounting methods and certain assumptions and estimates, which, if incorrect, could cause unexpected losses in the future
  3. 22We are subject to an extensive body of accounting rules and best practices. Periodic changes to such rules may change the treatment and recognition of critical financial line items and affect our profitability53% rewritten

Risks Related to Cybersecurity, Third Parties and Technology

  1. 23We are subject to certain risks in connection with our use of technology61% rewritten
  2. 24Our current and future uses of Artificial Intelligence (AI) and other emerging technologies may create additional risks
  3. 25We are subject to certain risks in connection with our data management or aggregation84% rewritten
  4. 26Our business may be adversely affected by an increasing prevalence of fraud and other financial crimes
  5. 27The financial services market is undergoing rapid technological changes, and if we are unable to stay current with those changes, we will not be able to effectively compete

Risks Related to Regulatory and Compliance Matters

  1. 28The level of our commercial real estate loan portfolio may subject us to additional regulatory scrutiny
  2. 29We operate in a highly regulated environment and may be adversely affected by changes in federal and state laws and regulations that could increase our costs of operations28% rewritten
  3. 30Non-compliance with the USA PATRIOT Act, Bank Secrecy Act, or other laws and regulations could result in fines or sanctions and limit our ability to get regulatory approval of acquisitions
  4. 31If our enterprise risk management framework is not effective at mitigating risk and loss to us, we could suffer unexpected losses100% rewritten
  5. 32Climate change and related legislative and regulatory initiatives may materially affect the Company’s business and results of operations41% rewritten

Risks Related to Our Business and Industry Generally

  1. 33We rely on other companies to provide key components of our business infrastructure
  2. 34Ineffective liquidity management could adversely affect our financial results and condition35% rewritten
  3. 35Several of our large depositors have relationships with each other, which creates a higher risk that one client’s withdrawal of its deposit could lead to a loss of deposits from other clients within the relationship, which, in turn, could force us to fund our business through more expensive and less stable sources47% rewritten
  4. 36Our growth or future losses may require us to raise additional capital in the future, but that capital may not be available when it is needed, or the cost of that capital may be exceedingly high
  5. 37Our liquidity is dependent on dividends from the Bank
  6. 38We rely heavily on our management team and could be adversely affected by the unexpected loss of key officers and relationship managers
  7. 39Scrutiny and evolving expectations from customers, regulators, investors, and other stakeholders with respect to our environmental, social and governance practices may impose additional costs on us or expose us to new or additional risks23% rewritten

Other BayCom 10-Ks

  • FY2024 10-K risk factors
    38 risks

    BayCom faces heavy geographic concentration in five Western states and high exposure to commercial real estate loans.

    Filed Mar 14, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.