Lead Bookrunner: BayCom Corp Subordinate Debt Offering

BayCom Corp (NASDAQ GSM: BCML), the parent company of United Business Bank (the “Bank”), announced the pricing of its public offering of $65.0 million aggregate principal amount of 5.25% Fixed-to-Floating Rate Subordinated Notes due 2030. Janney’s Financial Institutions Group served as Lead Bookrunner in connection with the offering.

Capital Raising Efforts

• Announcement Date: August 6, 2020
• Offering Size: $65.0 million
• Security Type: Subordinated Debt
• Rating: BBB (Egan Jones)
• Distribution: Public; Retail and Institutional
• Maturity: 10 Years (5 Year no call)
• Coupon Rate: 5.25%; Fixed to Float
• Use of Proceeds: The Company intends to use the net proceeds for general corporate purposes including capital to support growth organically or through acquisitions, repayment or redemption of outstanding indebtedness, the payment of dividends, and capital expenditures.

Financial Highlights

• Stock Price at Announcement: $10.80
• MRQ Financial Period: 6/30/20
• Assets ($000): $2,189,831
• Loans ($000): 1,711,174
• Deposits ($000): 1,886,919
• Tang. Common Equity ($000): 204,362
• MRQ ROAA: 0.57%
• MRQ ROAE: 4.93%
• MRQ NIM: 4.14%
• MRQ Efficiency Ratio: 60.8%

Key Offering Observations

• Janney’s Financial Institutions Group served as Lead Bookrunner for this public offering
• Interest on the notes will be fixed for the first five years and become callable thereafter; floating rate thereafter is based on 3-month SOFR
• Three days of marketing took place leveraging Janney’s retail distribution capabilities
• The deal was upsized from $50M to $65M
• Support from Janney extensive retail group in conjunction with Janney’s institutional clients resulted in effective and timely execution
• The process was efficient, lasting six weeks from start to close

Company Overview

BayCom Corp is a bank holding company headquartered in Walnut Creek, California. 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, with 16 locations in California, two in Washington, five in Central New Mexico and 11 in Colorado, including four full-service branches recently acquired in the Company’s acquisition of Grand Mountain Bank. The Company’s business activities generally are limited to passive investment activities and oversight of its investment in the Bank.