BayCom Corp Announces Cash Dividend and Adoption of New Stock Repurchase Program

Rhea-AI Summary

BayCom Corp (NASDAQ: BCML), the parent company of United Business Bank, announced a quarterly cash dividend of $0.10 per share, payable on July 11, 2024, to shareholders of record by June 13, 2024.

Additionally, the company introduced its ninth stock repurchase program, allowing for the buyback of up to 560,000 shares, approximately 5% of its outstanding shares, over a one-year period. This new program will start after the completion of the existing stock repurchase program, which will expire on April 21, 2025, or earlier if all shares are repurchased.

The buyback strategy will involve open market purchases, privately-negotiated transactions, and block purchases, adhering to federal securities laws. However, the repurchase program does not obligate the company to buy a specific number of shares and can be altered at any time.

Positive

• Quarterly cash dividend of $0.10 per share announced.
• Dividend payable on July 11, 2024, to shareholders of record by June 13, 2024.
• Introduction of the ninth stock repurchase program.
• Authorization to repurchase up to 560,000 shares, about 5% of outstanding shares.
• Repurchases can occur through various methods, including open market and privately-negotiated transactions.

Negative

• Only 12,627 shares remain available for repurchase under the current eighth repurchase program.
• The new repurchase program does not obligate the company to buy any specific number of shares.
• The program can be modified, expanded, or discontinued at any time, adding uncertainty.

Financial Analyst

BayCom Corp's announcement of a $0.10 per share dividend and the initiation of its ninth stock repurchase program are significant developments for investors. The dividend yield reflects the company's commitment to returning value to its shareholders. Although a $0.10 dividend might seem modest, it offers a tangible return, especially in a low-interest-rate environment. The decision to authorize the repurchase of up to 560,000 shares (about 5% of total outstanding shares) could positively affect the stock price by reducing supply and signaling management's confidence in the company's future prospects.

Dividend payments suggest a stable cash flow and earnings, which typically appeal to income-focused investors. On the other hand, share repurchase programs often indicate that the company believes its stock is undervalued. This can be a positive signal to the market, potentially driving the stock price up as the supply decreases. However, investors should also consider the opportunity cost—namely, the company is allocating capital to repurchase shares instead of investing in growth initiatives.

From a broader market perspective, these actions may be viewed as prudent capital management, showcasing a balance between rewarding shareholders and investing in the company's future. However, they also imply that the management views the current share price as a good value proposition.

In conclusion, these steps are likely to be welcomed by the market, reflecting a blend of short-term capital returns and long-term strategic planning.

WALNUT CREEK, Calif.--(BUSINESS WIRE)-- BayCom Corp (NASDAQ: BCML) (“BayCom” or the “Company”), the parent company of United Business Bank, today announced that its Board of Directors (the “Board”) declared a quarterly cash dividend of $0.10 per share on the Company's outstanding common stock. The cash dividend is payable on July 11, 2024, to shareholders of record as of the close of business on June 13, 2024.

The Company today also announced that the Board approved the Company’s ninth stock repurchase program, which authorizes the repurchase of up to 560,000 shares of the Company’s common stock, or approximately 5% of currently outstanding shares, over a one-year period, through open market purchases, privately-negotiated transactions, block purchases or otherwise, in accordance with federal securities laws and regulations, including Rule 10b-18 under the Securities Exchange Act of 1934, as applicable. The new stock repurchase program will commence upon completion of the Company’s eighth stock repurchase program, which will expire on April 21, 2025, or earlier if all the shares have been repurchased. As of the date hereof, 12,627 shares remain available for future repurchases under the Company’s eighth stock repurchase program.

The timing of repurchases, and the number and price of shares repurchased, will depend on a number of factors, including, but not limited to, the terms of any Rule 10b5-1 trading plan adopted by the Company, general business and market conditions, and alternative investment opportunities. The share buyback program does not obligate the Company to acquire any specific number of shares in any period, and may be expanded, extended, modified or discontinued at any time.

About BayCom Corp

The Company, through its wholly owned operating subsidiary, United Business Bank, offers a full range of loans, including SBA, CalCAP, FSA and USDA guaranteed loans, and deposit products and services to businesses and their affiliates in California, Washington, New Mexico and Colorado. The Bank is an Equal Housing Lender and a member of FDIC. The Company’s common stock is traded on the NASDAQ under the symbol “BCML”. For more information, go to www.unitedbusinessbank.com.

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to the Company's financial condition, results of operations, plans, objectives, future performance or business, including information regarding the ability of BayCom to pay dividends in the future and repurchases by BayCom of its common stock. You should not place undue reliance on these statements, as they are subject to risks and uncertainties, and actual results and performance in future periods may be materially different from any future results or performance suggested by the forward-looking statements in this release. Factors that might cause such differences include, but are not limited to, the Company’s financial condition and results of operations, significant changes in the market price and availability of BayCom's common stock, general economic conditions, as well as those within our industry, and numerous other factors identified in BayCom's Annual Report on Form 10-K for the year ended December 31, 2023, subsequent Quarterly Reports on Form 10-Q and other documents filed with or furnished to the Securities and Exchange Commission. Such forward-looking statements speak only as of the date of this release. The Company expressly disclaims any obligation to update or revise any forward-looking statements made herein to reflect any changes in the Company's expectations of results or any change in events.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240524988993/en/

BayCom Corp

Keary Colwell, 925-476-1800

kcolwell@ubb-us.com

Source: BayCom Corp

FAQ

What is the cash dividend announced by BayCom Corp?

BayCom Corp announced a quarterly cash dividend of $0.10 per share, payable on July 11, 2024, to shareholders of record as of June 13, 2024.

What is the new stock repurchase program by BayCom Corp?

BayCom Corp's ninth stock repurchase program authorizes the buyback of up to 560,000 shares, approximately 5% of its outstanding shares, over a one-year period.

When will the new stock repurchase program by BayCom Corp commence?

The new stock repurchase program will commence upon the completion of the current eighth repurchase program, which will expire on April 21, 2025, or earlier if all shares are repurchased.

How many shares are available for repurchase under BayCom Corp's eighth stock repurchase program?

As of the press release date, 12,627 shares remain available for future repurchases under BayCom Corp's eighth stock repurchase program.

What factors will influence BayCom Corp's stock repurchase program?

Factors include the terms of any Rule 10b5-1 trading plan, general business and market conditions, and alternative investment opportunities.

Is BayCom Corp obligated to repurchase a specific number of shares under the new program?

No, the repurchase program does not obligate BayCom Corp to acquire any specific number of shares and may be expanded, extended, modified, or discontinued at any time.