BayCom in Walnut Creek, Calif., reported lower quarterly profit after it purged its securities portfolio.
The $2.7 billion-asset company said in a press release that its third-quarter profit fell by 78% from a year earlier, to $1.1 million.
BayCom sold $106.8 million of available-for-sale investment securities at a $6.8 million loss. The proceeds were redeployed into higher-yielding, shorter-duration securities, generating a roughly 122 basis point improvement in the yield on redeployed assets.
The company also sold $7.8 million of preferred equity securities. That sale, combined with negative market performance, resulted in a $589,000 loss during the quarter.
“This quarter we took several deliberate actions to strengthen future earnings,” William Black, BayCom’s executive vice chairman, said in the release. “While these actions collectively reduced current-quarter earnings … they position us for stronger, more consistent performance going forward.”