What BayCom Corp told the SEC could break it.

BayCom is subject to extensive banking regulation: non-compliance with the USA PATRIOT Act, Bank Secrecy Act or other AML/customer-identification laws could result in fines or sanctions and limit its ability to obtain regulatory approval of acquisitions (a core part of its growth strategy), and the success of its SBA lending program depends on the continued availability of SBA loan programs, its status as an SBA Preferred Lender, and compliance with SBA requirements; adverse regulatory or supervisory developments could increase costs and restrict its activities.

“Non-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.”

BayCom's credit quality is sensitive to macroeconomic and trade-policy conditions affecting its commercial borrowers: tariffs, supply-chain disruptions or rising costs could reduce the ability of its clients — particularly the small- and medium-sized businesses it lends to — to repay loans, while prolonged inflation, elevated interest rates and trade disputes could dampen economic activity in its markets; these dynamics would negatively affect credit performance, loan demand and its financial results.

BayCom's banking operations are geographically concentrated: all of its branches and most of its deposit clients are located in California, Colorado, Nevada, New Mexico and Washington, with particular exposure to the San Francisco Bay Area, Southern California, Denver, Seattle, Central New Mexico and the California agricultural region; an economic downturn, real-estate decline, drought or other adverse condition in these markets — especially California — would reduce borrowers' ability to repay and impair its loan portfolio and deposits.

“All our branches and most of our deposit clients are located in these five states.”

BayCom carries notable single-borrower/single-asset concentration: within its one-to-four-family loan portfolio is a single loan to a real-estate investor with a $36.9 million net outstanding balance secured by a multi-unit residential property complex in Atwater, California; although performing at year-end, default, vacancy or value decline on this one large credit (or similar large commercial-real-estate exposures) would have an outsized effect on its credit quality and earnings.

“the one-to-family loan portfolio included one loan to a real estate investor, which had a net outstanding balance of $36.9 million, and was secured by a multi-unit residential property complex located in Atwater, California.”