BayCom Corp. Implements New Strategy with Fresh Leadership Team
BayCom Corp. in Walnut Creek, California, has recently undergone a significant change in its senior leadership team, signaling a new strategy for the $2.6 billion-asset company.
Transition in Leadership
The company, which is the parent of United Business Bank, announced the replacement of CEO George Guarini, Chief Operating Officer Janet King, and Chief Financial Officer Keary Colwell. In their place, BayCom has appointed former PacWest Bancorp executives William Black as executive vice chairman, Christopher Baron as CEO, and Kevin Thompson as CFO.
This move comes as a surprise to many, as Guarini, King, and Colwell had been in their positions since BayCom was founded in July 2004. During their tenure, they oversaw the growth of the company, completing 10 acquisitions and establishing 34 branches across five states.
Focus on Organic Growth
By bringing in new leadership from PacWest Bancorp, BayCom is shifting its focus towards organic growth. Analysts believe that the company is looking to improve its earnings power and potentially pursue acquisitions to expand its presence in the Western Region.
According to Brean Capital’s Timothy Coffey, the leadership change indicates a strategic shift towards building a premier Western Regional Bank with a stronger emphasis on organic growth.
Investor Reaction
Following the announcement of the new leadership team, BayCom’s shares experienced a decline of over 10% as investors reacted negatively to the news. Analysts suggest that shareholders may have been expecting the company to pursue a sale, but the appointment of executives focused on organic growth has shifted expectations.
Financial Performance and Recent Acquisitions
Despite being profitable in recent years, BayCom has seen subdued loan growth, prompting the board to address the “organic growth gap” that is impacting the company’s valuation. The most recent acquisition of Pacific Enterprise Bancorp in Irvine, California, closed in February 2022, further expanding BayCom’s footprint in Southern California.
With the new leadership team in place, BayCom is looking to energize its operations and drive enhanced franchise value in the medium-to-long term. The executives bring a wealth of experience from their time at PacWest Bancorp and are focused on building a growth engine and executing strategic combinations to strengthen BayCom’s presence in the Western Region.
Conclusion
BayCom Corp.’s decision to revamp its senior leadership team reflects a new strategic direction for the company, with a renewed focus on organic growth and building a premier Western Regional Bank. While investors initially reacted negatively to the news, the board is confident that the new team will drive value and solidify BayCom’s position in the market.
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