Pacific Mercantile Bancorp (Nasdaq: PMBC), the holding company of
Pacific Mercantile Bank (the “Bank”), a wholly owned banking
subsidiary, today reported its financial results for the three and
nine months ended September 30, 2020.
For the third quarter of 2020, the Company
reported net income of $5.1 million, or $0.21 per fully diluted
share. This compares to net income of $1.9 million, or $0.08 per
fully diluted share, in the second quarter of 2020, and net income
of $1.6 million, or $0.07 per fully diluted share, in the third
quarter of 2019. The increase in net income, as compared to the
three months ended June 30, 2020, is attributable to an
increase in net interest income resulting from decreased interest
expense as we continued to reduce our costs of deposits while
interest and fee income increased from $281.0 million in loans
funded through the successful execution of the PPP. In addition,
noninterest income increased primarily from increased service fees
and gain on sale of SBA loans in the third quarter, and we had no
provision for loan and lease losses for the three months ended
September 30, 2020, compared to $2.9 million for the three
months ended June 30, 2020. The increase in net income, as
compared to the three months ended September 30, 2019, is
primarily attributable to a decrease in interest expense of $2.3
million from the same quarter of the prior year, and no provision
for loan and lease losses for the three months ended
September 30, 2020, compared to a $2.1 million provision taken
for the three months ended September 30, 2019.
Brad R. Dinsmore, President & CEO of Pacific
Mercantile Bancorp, said, “Our continued improvement in executing
our core strategies allowed us to deliver an increase in
profitability in the third quarter. With each quarter, we are
making consistent progress on reducing our cost of deposits,
increasing our level of non-interest income, and improving our
operating leverage, resulting in a higher level of earnings.
“Although the COVID-19 pandemic continues to
impact the Southern California market that we serve, we saw
encouraging trends in asset quality. Non-performing loans
decreased by 32% from the end of the second quarter and the vast
majority of our borrowers that received loan deferrals earlier this
year have now returned to their normal payment schedules. Our
remaining loan deferrals represented just 2.5% of our total loans
at September 30th.
“While the environment continues to be
challenging for loan growth and the ongoing pandemic creates
uncertainty around credit costs, we believe that the positive
trends we are seeing in net interest margin, non-interest income
and operating efficiency should enable us to deliver a consistent
level of core earnings for the foreseeable future. Our improved
cost structure and deposit base will also position us well to
deliver a higher level of profitability when economic conditions
improve, commercial loan demand returns to a more normalized level,
and we generate a higher level of balance sheet growth,” said Mr.
Dinsmore.
Results of Operations
The following tables show a summary of our
operating results for the dates and periods indicated. The
discussion below highlights the key factors contributing to the
changes shown in the following tables for the three and nine months
ended September 30, 2020, as compared to the three months
ended June 30, 2020 and the three and nine months ended
September 30, 2019.
| |
Three Months Ended |
| |
September 30, 2020 |
|
June 30, 2020 |
|
March 31, 2020 |
|
December 31, 2019 |
|
September 30, 2019 |
| |
|
| |
(Dollars in thousands) |
|
Total interest income |
$ |
16,016 |
|
|
$ |
15,580 |
|
|
$ |
14,769 |
|
|
$ |
16,277 |
|
|
$ |
16,767 |
|
| Total interest expense |
1,762 |
|
|
2,262 |
|
|
3,296 |
|
|
3,734 |
|
|
4,024 |
|
| Net interest income |
14,254 |
|
|
13,318 |
|
|
11,473 |
|
|
12,543 |
|
|
12,743 |
|
| Provision for loan and lease
losses |
— |
|
|
2,850 |
|
|
6,200 |
|
|
3,750 |
|
|
2,100 |
|
| Total noninterest income |
2,245 |
|
|
1,171 |
|
|
1,095 |
|
|
1,369 |
|
|
1,342 |
|
| Total noninterest expense |
9,275 |
|
|
8,934 |
|
|
9,720 |
|
|
9,790 |
|
|
9,697 |
|
| Income tax provision
(benefit) |
2,138 |
|
|
800 |
|
|
(991 |
) |
|
(68 |
) |
|
658 |
|
| Net income (loss) |
$ |
5,086 |
|
|
$ |
1,905 |
|
|
$ |
(2,361 |
) |
|
$ |
440 |
|
|
$ |
1,630 |
|
| |
Nine Months Ended September 30, |
|
|
|
|
|
| |
2020 |
|
2019 |
|
|
|
|
| |
|
|
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
Total interest income |
$ |
46,364 |
|
|
$ |
49,399 |
|
|
|
|
|
| Total interest expense |
7,320 |
|
|
12,387 |
|
|
|
|
|
| Net interest income |
39,044 |
|
|
37,012 |
|
|
|
|
|
| Provision for loan and lease
losses |
9,050 |
|
|
5,400 |
|
|
|
|
|
| Total noninterest income |
4,510 |
|
|
4,219 |
|
|
|
|
|
| Total noninterest expense |
27,925 |
|
|
28,388 |
|
|
|
|
|
| Income tax provision |
1,948 |
|
|
2,204 |
|
|
|
|
|
| Net income |
$ |
4,631 |
|
|
$ |
5,239 |
|
|
|
|
|
Net Interest Income
Q3 2020 vs Q2 2020. Net
interest income increased $936 thousand, or 7.0%, for the three
months ended September 30, 2020 as compared to the three
months ended June 30, 2020 primarily as a result of:
- An increase in interest income of $436 thousand, or 2.8%,
primarily attributable to the successful execution of PPP with an
increase in loans resulting in increased fee income for the
quarter, and increased income from loan prepayments and interest
recoveries on previously charged-off loans during the three months
ended September 30, 2020 as compared to the three months ended
June 30, 2020; and
- A decrease in interest expense of $500 thousand, or 22.1%,
primarily attributable to our ongoing focus on reducing costs of
deposits during the three months ended September 30, 2020,
driven by lowered rates a favorable change in our mix of
deposits.
Our net interest margin increased to 3.34% for
the three months ended September 30, 2020 as compared to 3.17%
for the three months ended June 30, 2020. The increase was
primarily attributable to our on reduced cost of deposits. The
increase in net interest margin was also impacted by a favorable
change in our mix of deposits from higher costing money market and
certificates of deposit to lower costing noninterest bearing
deposits.
Q3 2020 vs Q3 2019. Net
interest income increased $1.5 million, or 11.9%, for the three
months ended September 30, 2020 as compared to the three
months ended September 30, 2019 primarily as a result of:
- A decrease in interest expense of $2.3 million, or 56.2%,
primarily attributable to our focus on reducing costs of deposits
in combination with the 175 basis point reduction in interest rates
by the Federal Reserve during the period from September 30,
2019 to September 30, 2020. Also contributing to the
decrease was a favorable change in our mix of deposits from higher
costing deposits to noninterest bearing deposits; partially offset
by
- A decrease in interest income of $751 thousand, or 4.5%,
primarily attributable to a decrease in interest earned on
short-term investments as a result of lower average yields in the
declining interest rate environment during the three months ended
September 30, 2020 as compared to the three months ended
September 30, 2019, partially offset by increased income from
our participation in PPP.
YTD 2020 vs YTD 2019. Net
interest income increased $2.0 million, or 5.5%, for the nine
months ended September 30, 2020 as compared to the nine months
ended September 30, 2019, primarily as a result of:
- A decrease in interest expense of $5.1 million, or 40.9%,
primarily attributable to our focus on reducing costs of deposits
in combination with the 175 basis point reduction in interest rates
by the Federal Reserve during the period from September 30,
2019 to September 30, 2020; partially offset by
- A decrease in interest income of $3.0 million, or 6.1%,
primarily attributable to a decrease in interest earned on
short-term investments as a result of lower average yields in the
declining interest rate environment during the nine months ended
September 30, 2020 as compared to the nine months ended
September 30, 2019, partially offset by increased income from
our participation in PPP.
Provision for Loan and Lease
Losses
Q3 2020 vs Q2 2020. We recorded
no provision for loan and lease losses during the three months
ended September 30, 2020 as a result of a decrease in the
balance of our loan portfolio. We recorded a $2.9 million provision
for loan and lease losses during the three months ended
June 30, 2020 as a result of net charge-offs, an increase in
classified and nonperforming loans, and qualitative factor
increases related to COVID during the second quarter. During the
three months ended September 30, 2020, we had net charge-offs
of $681 thousand compared to net charge-offs of $2.2 million for
the three months ended June 30, 2020.
Q3 2020 vs Q3 2019. We recorded
no provision for loan and lease losses during the three months
ended September 30, 2020 as a result of a decrease in our loan
portfolio. We recorded a $2.1 million provision for loan and lease
losses during the three months ended September 30, 2019 as a
result of net charge-offs, an increase in classified loans, and
growth in our loan portfolio during the quarter.
YTD 2020 vs YTD 2019. We
recorded a $9.1 million provision for loan and lease losses during
the nine months ended September 30, 2020 as a result of net
charge-offs of $5.2 million, an increase in classified and
nonperforming loans, and qualitative factor increases related to
COVID. We recorded a $5.4 million provision for loan and lease
losses during the nine months ended September 30, 2019 as a
result of net charge-offs of $6.8 million, an increase in
classified and nonperforming loans, and growth in our loan
portfolio.
Noninterest Income
Q3 2020 vs Q2 2020. Noninterest
income increased by $1.1 million, or 91.7%, for the three months
ended September 30, 2020 as compared to the three months ended
June 30, 2020, primarily resulting from gain on sale of SBA
loans in the amount of $535 thousand that did not occur in the
prior quarter, and an increase in deposit related fees, credit card
fees and loan service fees.
Q3 2020 vs Q3 2019. Noninterest
income increased by $903 thousand, or 67.3%, for the three months
ended September 30, 2020 as compared to the three months ended
September 30, 2019, primarily as a result of an increase in
deposit related fees, credit card fees and loan service fees, and
an increase to net gain on sale of SBA loans.
YTD 2020 vs YTD 2019.
Noninterest income increased $291 thousand, or 6.9%, for the nine
months ended September 30, 2020 as compared to the nine months
ended September 30, 2019, primarily as a result of:
- An increase of $735 thousand in deposit related fees, credit
card fees and loan service fees during the nine months ended
September 30, 2020 as compared to the same period in 2019;
partially offset by
- Gain on sale of SBA loans of $535 thousand during the nine
months ended September 30, 2020 as compared to gain on sale of
$866 thousand during the same period in 2019.
Noninterest Expense
Q3 2020 vs Q2 2020. Noninterest
expense increased $341 thousand, or 3.8%, for the three months
ended September 30, 2020 as compared to the three months ended
June 30, 2020, primarily as a result of:
- An increase of $156 thousand in FDIC insurance expense based on
an increased average asset size that resulted from our
participation in PPP, and
- An increase of $92 thousand in salaries and employee benefits
primarily related to bonuses to employees in recognition of their
contribution to the successful execution of PPP, and
- An increase of $54 thousand in equipment and depreciation
related to hardware and software purchases resulting from the
efforts to deploy work-from-home capabilities for more of our
employees, and
- An increase of $44 thousand in other noninterest expense
primarily related to business development and other operating
expenses.
Q3 2020 vs Q3 2019. Noninterest
expense decreased $422 thousand, or 4.4%, for the three months
ended September 30, 2020 as compared to the three months ended
September 30, 2019, as cost savings initiatives were
implemented during the year with the following results:
- A decrease of $516 thousand in salaries and employee benefits
primarily related to the staffing changes made at the bank during
the second quarter of 2020; and
- A decrease of $423 thousand in our professional fees primarily
related to higher legal and consulting fees during the third
quarter of 2019 compared to lower legal and consulting fees in the
third quarter of 2020 resulting from the cost reduction initiatives
executed during the first quarter of 2020; partially offset by
- An increase of $390 thousand in FDIC expenses based on an
increased average asset size that resulted from our participation
in PPP versus receiving a rebate from the FDIC during the third
quarter of 2019; and
- An increase of $102 thousand in equipment and depreciation
related to hardware and software purchases resulting from the
efforts to deploy work-from-home capabilities for more of our
employees.
YTD 2020 vs YTD 2019.
Noninterest expense decreased $463 thousand, or 1.6%, for the nine
months ended September 30, 2020 as compared to the nine months
ended September 30, 2019, primarily as a result of:
- A decrease of $847 thousand in our professional fees primarily
related to higher legal and consulting fees during 2019; and
- A decrease of $162 thousand in salaries and employee benefits
primarily related to the staffing changes made at the bank during
the second quarter of 2020; partially offset by
- An increase of $436 thousand in FDIC expenses based on an
increased average asset size that resulted from our participation
in PPP versus receiving a rebate from the FDIC during the third
quarter of 2019; and
- An increase of $120 thousand in equipment and depreciation
related to hardware and software purchases resulting from the
efforts to deploy work-from-home capabilities for more of our
employees.
Income tax provision
For the three and nine months ended
September 30, 2020, we had an income tax expense of $2.1
million and $1.9 million, respectively. The income tax expense
during the three and nine months ended September 30, 2020 is a
result of our operating income. Accounting rules specify that
management must evaluate the deferred tax asset on a recurring
basis to determine whether enough positive evidence exists to
determine whether it is more-likely-than-not that the deferred tax
asset will be available to offset or reduce future taxes. The tax
code allows net operating losses incurred prior to December 31,
2017 to be carried forward for 20 years from the date of the loss,
and based on its evaluation, management believes that the Company
will be able to realize the deferred tax asset within the period
that our net operating losses may be carried forward. Due to the
hierarchy of evidence that the accounting rules specify, management
determined that there continued to be enough positive evidence to
support no valuation allowance on our deferred tax asset at
September 30, 2020.
For the three and nine months ended
September 30, 2019, we had an income tax expense of $658
thousand and $2.2 million, respectively, as a result of our
operating income. Due to the hierarchy of evidence that the
accounting rules specify, management determined that there
continued to be enough positive evidence to support no valuation
allowance on our deferred tax asset at September 30, 2019.
Balance Sheet Information
Loans
As indicated in the table below, at
September 30, 2020, gross loans totaled approximately $1.28
billion, which represented a decrease of $90.8 million, or 6.6%,
compared to gross loans outstanding at June 30, 2020. The
following table sets forth the composition, by loan category, of
our loan portfolio at September 30, 2020, June 30, 2020,
and December 31, 2019.
| |
September 30, 2020 |
|
June 30, 2020 |
|
December 31, 2019 |
| |
Amount |
|
Percent ofTotal Loans |
|
Amount |
|
Percent ofTotal Loans |
|
Amount |
|
Percent ofTotal
Loans |
| |
|
| |
(Dollars in thousands) |
|
Commercial loans |
$ |
614,737 |
|
|
48.1 |
% |
|
$ |
698,280 |
|
|
51.0 |
% |
|
$ |
409,420 |
|
|
36.2 |
% |
| Commercial real estate loans -
owner occupied |
195,586 |
|
|
15.3 |
% |
|
195,379 |
|
|
14.3 |
% |
|
219,483 |
|
|
19.5 |
% |
| Commercial real estate loans -
all other |
199,911 |
|
|
15.6 |
% |
|
203,330 |
|
|
14.8 |
% |
|
208,283 |
|
|
18.5 |
% |
| Residential mortgage loans -
multi-family |
161,947 |
|
|
12.7 |
% |
|
164,575 |
|
|
12.0 |
% |
|
176,523 |
|
|
15.7 |
% |
| Residential mortgage loans -
single family |
13,764 |
|
|
1.1 |
% |
|
15,522 |
|
|
1.1 |
% |
|
18,782 |
|
|
1.7 |
% |
| Construction and land
development loans |
9,300 |
|
|
0.7 |
% |
|
7,247 |
|
|
0.5 |
% |
|
2,981 |
|
|
0.3 |
% |
| Consumer loans |
83,736 |
|
|
6.5 |
% |
|
85,414 |
|
|
6.3 |
% |
|
90,867 |
|
|
8.1 |
% |
| Gross loans |
$ |
1,278,981 |
|
|
100.0 |
% |
|
$ |
1,369,747 |
|
|
100.0 |
% |
|
$ |
1,126,339 |
|
|
100.0 |
% |
The decrease of $90.8 million in gross loans
during the third quarter of 2020 was primarily a result of loan
payoffs and paydowns on lines of credit. Excluding the PPP, we
funded total new organic loans of $28.0 million offset by loan
payoffs of $119.1 million and charge offs of $840 thousand. The
charge offs of $840 thousand included three commercial loan
relationships that had been previously identified as classified,
for which we are continuing our collection efforts.
During the third quarter of 2020, we secured new
client relationships with commercial loan commitments of $22.4
million, of which $10.0 million were funded at September 30,
2020. Our total commercial loan commitments decreased to $933.4
million at September 30, 2020 from $963.5 million at
June 30, 2020, and the utilization rate of commercial loan
commitments decreased to 66.1% at September 30, 2020 from
72.5% at June 30, 2020. Excluding PPP loans, total commitments
decreased to $652.5 million at September 30, 2020 from $683.3
million at June 30, 2020, and the utilization rate of
commercial loan commitments decreased to 51.5% from 61.2% at
June 30, 2020.
Deposits
| |
September 30, 2020 |
|
June 30, 2020 |
|
December 31, 2019 |
| |
|
| Type of
Deposit |
(Dollars in thousands) |
|
Noninterest-bearing checking accounts |
$ |
661,462 |
|
|
$ |
596,052 |
|
|
$ |
397,000 |
|
|
Interest-bearing checking accounts |
139,425 |
|
|
110,707 |
|
|
108,941 |
|
|
Money market and savings deposits |
378,940 |
|
|
472,246 |
|
|
416,751 |
|
|
Certificates of deposit |
227,723 |
|
|
249,521 |
|
|
276,878 |
|
|
Totals |
$ |
1,407,550 |
|
|
$ |
1,428,526 |
|
|
$ |
1,199,570 |
|
The decrease in total deposits of $21.0 million,
or 1.5%, during the three months ended September 30, 2020 from
June 30, 2020 is primarily attributable to a decrease in
higher costing money market and savings accounts and certificates
of deposit. Money market and savings accounts decreased by $93.3
million, or 19.8%, and certificates of deposit decreased by $21.8
million, or 8.7%, partially offset by noninterest-bearing checking
accounts increased by $65.4 million, or 11.0%, and interest-bearing
checking accounts increased by $28.7 million, or 25.9%. Lower
priced core deposits increased to 83.8% of total deposits, while
higher priced certificates of deposits decreased to 16.2% of total
deposits at September 30, 2020, as compared to 82.5% and
17.5%, respectively at June 30, 2020.
Asset Quality
Nonperforming Assets
| |
2020 |
|
2019 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
September 30 |
| |
|
| |
(Dollars in
thousands) |
| Total
nonperforming loans |
$ |
16,780 |
|
|
$ |
24,681 |
|
|
$ |
20,021 |
|
|
$ |
15,682 |
|
|
$ |
13,209 |
|
| Other nonperforming assets |
150 |
|
|
663 |
|
|
392 |
|
|
164 |
|
|
138 |
|
| Total nonperforming assets |
$ |
16,930 |
|
|
$ |
25,344 |
|
|
$ |
20,413 |
|
|
$ |
15,846 |
|
|
$ |
13,347 |
|
| 30-89 day past due loans |
$ |
25,616 |
|
|
$ |
7,175 |
|
|
$ |
22,437 |
|
|
$ |
2,779 |
|
|
$ |
7,827 |
|
| 90-day past due loans |
$ |
9,893 |
|
|
$ |
12,412 |
|
|
$ |
3,765 |
|
|
$ |
533 |
|
|
$ |
86 |
|
| Total classified assets |
$ |
84,616 |
|
|
$ |
83,104 |
|
|
$ |
44,825 |
|
|
$ |
37,192 |
|
|
$ |
32,025 |
|
| Allowance for loan and lease losses |
$ |
17,485 |
|
|
$ |
18,166 |
|
|
$ |
17,520 |
|
|
$ |
13,611 |
|
|
$ |
12,086 |
|
| Allowance for loan and lease losses /gross loans |
1.37 |
% |
|
1.33 |
% |
|
1.53 |
% |
|
1.21 |
% |
|
1.04 |
% |
| Allowance for loan and lease losses /total assets |
1.08 |
% |
|
1.08 |
% |
|
1.09 |
% |
|
0.96 |
% |
|
0.84 |
% |
| Ratio of allowance for loan and lease losses to nonperforming
loans |
104.20 |
% |
|
73.60 |
% |
|
87.51 |
% |
|
86.79 |
% |
|
91.50 |
% |
| Ratio of nonperforming assets to total assets |
1.04 |
% |
|
1.50 |
% |
|
1.28 |
% |
|
1.12 |
% |
|
0.93 |
% |
| Net quarterly charge-offs to gross loans (annualized) |
0.21 |
% |
|
0.65 |
% |
|
0.81 |
% |
|
0.78 |
% |
|
0.51 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2020 vs June 30,
2020. Nonperforming assets at September 30, 2020
decreased by $8.4 million from June 30, 2020 primarily as a
result of a decrease in nonperforming loans. The decrease in our
nonperforming loans during the three months ended
September 30, 2020 resulted from principal payments of $8.5
million and charge-offs of $840 thousand, partially offset by the
addition of $1.4 million of commercial and consumer loans. As a
result of this decrease in nonperforming loans, the ratio of
nonperforming assets to total assets decreased from 1.50% at
June 30, 2020 to 1.04% at September 30, 2020. The ratio
of allowance for loan and lease losses to nonperforming loans
increased to 104.2% at September 30, 2020, from 73.6% at
June 30, 2020, as a result of a greater decrease to
nonperforming loans than the decrease to allowance for loan and
lease losses during the third quarter. Our past due loans do not
include loans that have had their payments deferred as a result of
assistance being provided to our borrowers due to COVID-19. As of
September 30, 2020 we had 24 loans with an outstanding balance
of $31.9 million that were under a payment deferral. As of
June 30, 2020, we had 76 loans with an outstanding balance of
$34.5 million that were under a payment deferral.
Our classified assets increased by $1.5 million from $83.1
million at June 30, 2020 to $84.6 million at
September 30, 2020. The increase this quarter is primarily
related to additions of $14.8 million during the three months ended
September 30, 2020, partially offset by principal payments of
$11.7 million, charge-offs of $840 thousand, and upgraded notes of
$259 thousand during the same period. The additions to classified
loans during the three months ended September 30, 2020
represented the migration of loans to classified rating from loans
that were previously rated as Special Mention, or "Watch" within
the Pass category in the previous quarter.
September 30, 2020 vs September 30,
2019. Nonperforming assets at September 30, 2020
increased by $3.6 million from September 30, 2019 primarily as
a result of an increase in nonperforming loans to $16.8 million in
the current quarter from $13.2 million the prior year. As a result
of this increase to nonperforming loans, the ratio of nonperforming
assets to total assets increased from 0.93% at September 30,
2019 to 1.04% at September 30, 2020.
Our classified assets increased by $52.6 million
to $84.6 million at September 30, 2020 from $32.0 million at
September 30, 2019. The additions to classified loans
represented the migration of loans to classified rating from loans
that were previously rated as Special Mention, or "Watch" within
our Pass category in the same quarter of the prior year.
Allowance for loan and lease losses
| |
2020 |
|
2019 |
|
September 30 |
|
June 30 |
|
March 31 |
|
December 31 |
|
September 30 |
| |
|
| |
(Dollars in
thousands) |
| Balance at
beginning of quarter |
$ |
18,166 |
|
|
$ |
17,520 |
|
|
$ |
13,611 |
|
|
$ |
12,086 |
|
|
$ |
11,474 |
|
|
Charge offs |
(840 |
) |
|
(2,249 |
) |
|
(2,314 |
) |
|
(2,608 |
) |
|
(1,551 |
) |
|
Recoveries |
159 |
|
|
45 |
|
|
23 |
|
|
383 |
|
|
63 |
|
|
Provision |
— |
|
|
2,850 |
|
|
6,200 |
|
|
3,750 |
|
|
2,100 |
|
| Balance at end of quarter |
$ |
17,485 |
|
|
$ |
18,166 |
|
|
$ |
17,520 |
|
|
$ |
13,611 |
|
|
$ |
12,086 |
|
At September 30, 2020, the allowance for
loan and lease losses (“ALLL”) totaled $17.5 million, which was
approximately $681 thousand less than at June 30, 2020 and
$6.1 million more than at September 30, 2019. The ALLL
activity during the three months ended September 30, 2020
included net charge-offs of $681 thousand. There was no provision
for loan and lease losses during the period, primarily attributable
to the decrease in the loan portfolio during the three months ended
September 30, 2020. The ratio of the ALLL-to-total loans
outstanding as of September 30, 2020 was 1.37%, or 1.75% if
the outstanding balance of PPP loans are excluded from total loans
(which is a non-GAAP financial measure), as compared to 1.33% and
1.67%, respectively, as of June 30, 2020, and 0.99% as of
September 30, 2019. The ratio of the ALLL-to-total loans
outstanding decreased from the prior year primarily due to the
origination of $281.0 million in PPP loans that are 100% guaranteed
by the SBA, which had the effect of reducing this ratio by 38 basis
points and 34 basis points, respectively, for the three months
ended September 30, 2020 and June 30, 2020.
Capital Resources
At September 30, 2020, the Bank had total
regulatory capital of $178.1 million. The ratio of the Bank’s total
capital-to-risk weighted assets, which is a principal federal bank
regulatory measure of the financial strength of banking
institutions, was 16.0% which exceeds the minimum for a bank to be
classified under federal bank regulatory guidelines as a
“well-capitalized” banking institution, which is the highest of the
capital standards established by federal banking regulatory
authorities.
The following table sets forth the regulatory
capital and capital ratios of the Bank at September 30, 2020,
as compared to the regulatory requirements that must be met for a
banking institution to be rated as a well-capitalized
institution.
| |
Actual At September 30, 2020 |
|
Federal Regulatory Requirement to be Rated
Well-Capitalized |
| |
Amount |
|
Ratio |
|
Amount |
|
Ratio |
| |
|
| |
(Dollars in thousands) |
| |
|
|
|
|
|
|
|
|
Total Capital to Risk Weighted Assets |
$ |
178,100 |
|
|
16.0 |
% |
|
$ |
111,425 |
|
|
At least 10.0 |
| |
|
|
|
|
|
|
|
| Common Equity Tier 1 Capital to
Risk Weighted Assets |
$ |
164,124 |
|
|
14.7 |
% |
|
$ |
72,426 |
|
|
At least 6.5 |
| |
|
|
|
|
|
|
|
| Tier 1 Capital to Risk Weighted
Assets |
$ |
164,124 |
|
|
14.7 |
% |
|
$ |
89,140 |
|
|
At least 8.0 |
| |
|
|
|
|
|
|
|
| Tier 1 Capital to Average
Assets |
$ |
164,124 |
|
|
9.5 |
% |
|
$ |
86,750 |
|
|
At least 5.0 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
About Pacific Mercantile Bancorp
Pacific Mercantile Bancorp (Nasdaq: PMBC) is the
parent holding company of Pacific Mercantile Bank, which opened for
business March 1, 1999. The Bank, which is an FDIC insured,
California state-chartered bank and a member of the Federal Reserve
System, provides a wide range of commercial banking services to
businesses, business professionals and individual clients. The Bank
is headquartered in Orange County and operates a total of seven
offices in Southern California, located in Orange, Los Angeles, San
Diego, and San Bernardino counties. The Bank offers tailored
flexible solutions for its clients including an array of loan and
deposit products, sophisticated cash management services, and
comprehensive online banking services accessible at
www.pmbank.com.
Forward-Looking Information
This news release contains statements regarding our
expectations, beliefs and views about our future financial
performance and our business, trends and expectations regarding the
markets in which we operate, and our future plans, including the
credit exposure of certain loan products and other components of
our business that could be impacted by the COVID-19 pandemic. Those
statements, which include the quotation from management, constitute
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, can be identified by
the fact that they do not relate strictly to historical or current
facts. Often, they include words such as “believe,” “expect,”
“anticipate,” “intend,” “plan,” “estimate,” “project,” or words of
similar meaning, or future or conditional verbs such as “will,”
“would,” “should,” “could,” or “may”. Forward-looking statements
are based on current information available to us and our
assumptions about future events over which we do not have control.
Moreover, our business and our markets are subject to a number of
risks and uncertainties which could cause our actual financial
performance in the future, and the future performance of our
markets (which can affect both our financial performance and the
market prices of our shares), to differ, possibly materially, from
our expectations as set forth in the forward-looking statements
contained in this news release.
In addition to the risk of incurring loan losses, which is an
inherent risk of the banking business, these risks and
uncertainties include, but are not limited to, the following:
deteriorating economic conditions and macroeconomic factors such as
unemployment rates and the volume of bankruptcies, as well as
changes in monetary, fiscal or tax policy to address the impact of
COVID-19, any of which could cause us to incur additional loan
losses and adversely affect our results of operations in the
future; the risk that the credit quality of our borrowers declines;
potential declines in the value of the collateral for secured
loans; the risk that steps we have taken to strengthen our overall
credit administration are not effective; the risk that our interest
margins and, therefore, our net interest income will be adversely
affected by changes in prevailing interest rates; the risk that we
will not succeed in further reducing our remaining nonperforming
assets, in which event we would face the prospect of further loan
charge-offs and write-downs of other real estate owned and would
continue to incur expenses associated with the management and
disposition of those assets; the risk that we will not be able to
manage our interest rate risks effectively, in which event our
operating results could be harmed; the prospect that government
regulation of banking and other financial services organizations
will increase, causing our costs of doing business to increase and
restricting our ability to take advantage of business and growth
opportunities; the risk that our efforts to develop a robust
commercial banking platform may not succeed; and the risk that we
may be unable to realize our expected level of increasing deposit
inflows. Many of the foregoing risks and uncertainties are, and
will be, exacerbated by the COVID-19 pandemic and any worsening of
the global business and economic environment as a result. Readers
of this news release are encouraged to review the additional
information regarding these and other risks and uncertainties to
which our business is subject that are contained in our Annual
Report on Form 10-K for the year ended December 31, 2019, and
our Quarterly Reports on Form 10-Q for the quarters ended March 31,
2020 and June 30, 2020, each of which is on file with the
Securities and Exchange Commission (the “SEC”). Additional
information will be set forth in our Quarterly Report on Form 10-Q
for the three and nine months ended September 30, 2020, which we
expect to file with the SEC during the fourth quarter of 2020, and
readers of this release are urged to review the additional
information that will be contained in that report.
Due to these and other risks and uncertainties to which our
business is subject, you are cautioned not to place undue reliance
on the forward-looking statements contained in this news release,
which speak only as of its date, or to make predictions about our
future financial performance based solely on our historical
financial performance. We disclaim any obligation to update or
revise any of the forward-looking statements as a result of new
information, future events or otherwise, except as may be required
by law.
CONSOLIDATED STATEMENTS OF
OPERATIONS (Dollars and numbers of shares in
thousands, except per share data)
(Unaudited)
| |
Three Months Ended |
|
Nine Months Ended |
| |
September30, 2020 |
|
June 30,2020 |
|
September30, 2019 |
|
Sept '20 vsJune '20 % Change |
|
Sept '20 vsSept '19 % Change |
|
September30, 2020 |
|
September30, 2019 |
|
% Change |
|
Total interest income |
$ |
16,016 |
|
$ |
15,580 |
|
$ |
16,767 |
|
2.8% |
|
(4.5)% |
|
$ |
46,364 |
|
$ |
49,399 |
|
(6.1)% |
| Total interest expense |
1,762 |
|
2,262 |
|
4,024 |
|
(22.1)% |
|
(56.2)% |
|
7,320 |
|
12,387 |
|
(40.9)% |
|
Net interest income |
14,254 |
|
13,318 |
|
12,743 |
|
7.0% |
|
11.9% |
|
39,044 |
|
37,012 |
|
5.5% |
| Provision for loan and lease
losses |
— |
|
2,850 |
|
2,100 |
|
(100.0)% |
|
(100.0)% |
|
9,050 |
|
5,400 |
|
67.6% |
|
Net interest income after provision for loan and lease losses |
14,254 |
|
10,468 |
|
10,643 |
|
36.2% |
|
33.9% |
|
29,994 |
|
31,612 |
|
(5.1)% |
| Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service fees on deposits and other banking services |
891 |
|
625 |
|
463 |
|
42.6% |
|
92.4% |
|
2,038 |
|
1,303 |
|
56.4% |
|
Net gain on sale of small business administration loans |
535 |
|
— |
|
265 |
|
—% |
|
101.9% |
|
535 |
|
866 |
|
(38.2)% |
|
Net loss on sale of other assets |
(70) |
|
(53) |
|
(6) |
|
32.1% |
|
1,066.7% |
|
(117) |
|
(42) |
|
178.6% |
|
Other noninterest income |
889 |
|
599 |
|
620 |
|
48.4% |
|
43.4% |
|
2,054 |
|
2,092 |
|
(1.8)% |
| Total noninterest income |
2,245 |
|
1,171 |
|
1,342 |
|
91.7% |
|
67.3% |
|
4,510 |
|
4,219 |
|
6.9% |
| Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
5,554 |
|
5,462 |
|
6,070 |
|
1.7% |
|
(8.5)% |
|
17,085 |
|
17,247 |
|
(0.9)% |
|
Occupancy and equipment |
1,232 |
|
1,176 |
|
1,099 |
|
4.8% |
|
12.1% |
|
3,530 |
|
3,314 |
|
6.5% |
|
Professional fees |
695 |
|
702 |
|
1,118 |
|
(1.0)% |
|
(37.8)% |
|
2,257 |
|
3,104 |
|
(27.3)% |
|
OREO expenses, net |
— |
|
— |
|
— |
|
—% |
|
—% |
|
— |
|
69 |
|
(100.0)% |
|
FDIC expense (credit) |
366 |
|
210 |
|
(24) |
|
74.3% |
|
(1,625.0)% |
|
769 |
|
333 |
|
130.9% |
|
Other noninterest expense |
1,428 |
|
1,384 |
|
1,434 |
|
3.2% |
|
(0.4)% |
|
4,284 |
|
4,321 |
|
(0.9)% |
| Total noninterest expense |
9,275 |
|
8,934 |
|
9,697 |
|
3.8% |
|
(4.4)% |
|
27,925 |
|
28,388 |
|
(1.6)% |
|
Income before income taxes |
7,224 |
|
2,705 |
|
2,288 |
|
167.1% |
|
215.7% |
|
6,579 |
|
7,443 |
|
(11.6)% |
| Income tax expense |
2,138 |
|
800 |
|
658 |
|
167.3% |
|
224.9% |
|
1,948 |
|
2,204 |
|
(11.6)% |
|
Net income from continuing operations |
5,086 |
|
1,905 |
|
1,630 |
|
167.0% |
|
212.0% |
|
4,631 |
|
5,239 |
|
(11.6)% |
| Net income |
$ |
5,086 |
|
$ |
1,905 |
|
$ |
1,630 |
|
167.0% |
|
212.0% |
|
$ |
4,631 |
|
$ |
5,239 |
|
(11.6)% |
|
Net income allocable to common shareholders |
$ |
5,086 |
|
$ |
1,905 |
|
$ |
1,630 |
|
167.0% |
|
212.0% |
|
$ |
4,631 |
|
$ |
5,239 |
|
(11.6)% |
| Basic income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
$ |
0.21 |
|
$ |
0.08 |
|
$ |
0.07 |
|
162.5% |
|
200.0% |
|
$ |
0.20 |
|
$ |
0.22 |
|
(9.1)% |
| Diluted income per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available to common shareholders |
$ |
0.21 |
|
$ |
0.08 |
|
$ |
0.07 |
|
162.5% |
|
200.0% |
|
$ |
0.20 |
|
$ |
0.22 |
|
(9.1)% |
| Weighted average number of
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
23,516 |
|
23,502 |
|
23,356 |
|
0.1% |
|
0.7% |
|
23,498 |
|
22,606 |
|
3.9% |
|
Diluted |
23,720 |
|
23,713 |
|
23,657 |
|
—% |
|
0.3% |
|
23,712 |
|
23,605 |
|
0.5% |
| Ratios from continuing
operations(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
1.16% |
|
0.44% |
|
0.45% |
|
|
|
|
|
0.38% |
|
0.50% |
|
|
|
Return on average equity |
13.24% |
|
5.11% |
|
4.36% |
|
|
|
|
|
4.09% |
|
4.82% |
|
|
|
Efficiency ratio |
56.22% |
|
61.66% |
|
68.85% |
|
|
|
|
|
64.12% |
|
68.85% |
|
|
____________________
(1) Ratios for the three months ended
September 30, 2020, June 30, 2020 and September 30,
2019, and for the nine months ended September 30, 2020 and
September 30, 2019, have been annualized.
CONSOLIDATED STATEMENTS OF FINANCIAL
CONDITION(Dollars in thousands, except share and
book value data) (Unaudited)
|
ASSETS |
September 30, 2020 |
|
December 31, 2019 |
|
Increase/(Decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and due from banks |
$ |
16,957 |
|
|
$ |
17,409 |
|
|
(2.6)% |
|
| Interest bearing deposits with financial institutions(1) |
261,323 |
|
|
202,729 |
|
|
28.9% |
|
| Interest bearing time deposits |
1,847 |
|
|
2,420 |
|
|
(23.7)% |
|
| Investment securities (including stock) |
35,536 |
|
|
36,254 |
|
|
(2.0)% |
|
| Loans (net of allowances of $17,485 and $13,611,
respectively) |
1,263,367 |
|
|
1,117,511 |
|
|
13.1% |
|
| Net deferred tax assets |
9,339 |
|
|
8,434 |
|
|
10.7% |
|
| Intangible assets |
399 |
|
|
266 |
|
|
50.0% |
|
| Other assets |
33,773 |
|
|
31,131 |
|
|
8.5% |
|
|
Total assets |
$ |
1,622,541 |
|
|
$ |
1,416,154 |
|
|
14.6% |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
| Noninterest bearing deposits |
$ |
661,462 |
|
|
$ |
397,000 |
|
|
66.6% |
|
| Interest bearing deposits |
|
|
|
|
|
|
Interest checking |
139,425 |
|
|
108,941 |
|
|
28.0% |
|
|
Savings/money market |
378,940 |
|
|
416,751 |
|
|
(9.1)% |
|
|
Certificates of deposit |
227,723 |
|
|
276,878 |
|
|
(17.8)% |
|
|
Total interest bearing deposits |
746,088 |
|
|
802,570 |
|
|
(7.0)% |
|
|
Total deposits |
1,407,550 |
|
|
1,199,570 |
|
|
17.3% |
|
| Other borrowings |
23,962 |
|
|
30,000 |
|
|
(20.1)% |
|
| Other liabilities |
18,452 |
|
|
20,009 |
|
|
(7.8)% |
|
| Junior subordinated debentures |
17,527 |
|
|
17,527 |
|
|
—% |
|
|
Total liabilities |
1,467,491 |
|
|
1,267,106 |
|
|
15.8% |
|
| Shareholders’ equity |
155,050 |
|
|
149,048 |
|
|
4.0% |
|
|
Total Liabilities and Shareholders’ Equity |
$ |
1,622,541 |
|
|
$ |
1,416,154 |
|
|
14.6% |
|
| Book value per share |
$ |
6.56 |
|
|
$ |
6.32 |
|
|
3.8% |
|
| Shares outstanding, common |
23,644,111 |
|
|
23,573,529 |
|
|
0.3% |
|
____________________
(1) Interest bearing deposits held in the Bank’s
account maintained at the Federal Reserve Bank.
CONSOLIDATED AVERAGE BALANCES AND YIELD
DATA(Dollars in thousands)
(Unaudited)
| |
Three Months
Ended |
| |
September 30, 2020 |
|
June 30, 2020 |
|
September 30, 2019 |
| |
Average Balance |
|
Interest Earned/
Paid |
|
Average Yield/
Rate |
|
Average Balance |
|
Interest Earned/
Paid |
|
Average Yield/
Rate |
|
Average Balance |
|
Interest Earned/
Paid |
|
Average Yield/
Rate |
| Interest earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term investments(1) |
|
349,716 |
|
|
$ |
94 |
|
|
0.11 |
% |
|
$ |
322,023 |
|
|
$ |
79 |
|
|
0.10 |
% |
|
$ |
263,219 |
|
|
$ |
1,465 |
|
|
2.21 |
% |
|
Securities available for sale and stock(2) |
|
34,852 |
|
|
222 |
|
|
2.53 |
% |
|
|
35,000 |
|
|
210 |
|
|
2.41 |
% |
|
|
35,105 |
|
|
|
257 |
|
|
2.90 |
% |
|
Loans(3) |
|
1,312,502 |
|
|
15,700 |
|
|
4.76 |
% |
|
|
1,331,270 |
|
|
15,291 |
|
|
4.62 |
% |
|
|
1,097,646 |
|
|
|
15,045 |
|
|
5.44 |
% |
|
Total interest-earning assets |
|
1,697,070 |
|
|
16,016 |
|
|
3.75 |
% |
|
|
1,688,293 |
|
|
15,580 |
|
|
3.71 |
% |
|
|
1,395,970 |
|
|
|
16,767 |
|
|
4.77 |
% |
| Noninterest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
|
19,058 |
|
|
|
|
|
|
|
16,622 |
|
|
|
|
|
|
|
16,551 |
|
|
|
|
|
|
All other assets |
|
23,443 |
|
|
|
|
|
|
|
28,048 |
|
|
|
|
|
|
|
25,295 |
|
|
|
|
|
| Total assets |
$ |
1,739,571 |
|
|
|
|
|
|
$ |
1,732,963 |
|
|
|
|
|
|
$ |
1,437,816 |
|
|
|
|
|
| Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking accounts |
$ |
110,934 |
|
|
28 |
|
|
0.10 |
% |
|
$ |
103,164 |
|
|
25 |
|
|
0.10 |
% |
|
$ |
111,614 |
|
|
|
163 |
|
|
0.58 |
% |
|
Money market and savings accounts |
|
417,123 |
|
|
357 |
|
|
0.34 |
% |
|
|
454,877 |
|
|
567 |
|
|
0.50 |
% |
|
|
432,397 |
|
|
|
1,904 |
|
|
1.75 |
% |
|
Certificates of deposit |
|
239,219 |
|
|
1,131 |
|
|
1.88 |
% |
|
|
260,354 |
|
|
1,371 |
|
|
2.12 |
% |
|
|
259,830 |
|
|
|
1,562 |
|
|
2.39 |
% |
|
Other borrowings |
|
73,419 |
|
|
115 |
|
|
0.62 |
% |
|
|
122,015 |
|
|
130 |
|
|
0.43 |
% |
|
|
28,804 |
|
|
|
177 |
|
|
2.44 |
% |
|
Junior subordinated debentures |
|
17,527 |
|
|
131 |
|
|
2.97 |
% |
|
|
17,527 |
|
|
169 |
|
|
3.88 |
% |
|
|
17,527 |
|
|
|
218 |
|
|
4.93 |
% |
|
Total interest bearing liabilities |
|
858,222 |
|
|
1,762 |
|
|
0.82 |
% |
|
|
957,937 |
|
|
2,262 |
|
|
0.95 |
% |
|
|
850,172 |
|
|
|
4,024 |
|
|
1.88 |
% |
| Noninterest bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Demand deposits |
|
709,391 |
|
|
|
|
|
|
|
606,481 |
|
|
|
|
|
|
|
421,524 |
|
|
|
|
|
| Accrued expenses and other liabilities |
|
19,123 |
|
|
|
|
|
|
|
18,649 |
|
|
|
|
|
|
|
17,739 |
|
|
|
|
|
| Shareholders' equity |
|
152,835 |
|
|
|
|
|
|
|
149,896 |
|
|
|
|
|
|
|
148,381 |
|
|
|
|
|
| Total liabilities and shareholders' equity |
$ |
1,739,571 |
|
|
|
|
|
|
$ |
1,732,963 |
|
|
|
|
|
|
$ |
1,437,816 |
|
|
|
|
|
| Net interest income |
|
|
$ |
14,254 |
|
|
|
|
|
|
$ |
13,318 |
|
|
|
|
|
|
$ |
12,743 |
|
|
|
| Net interest income/spread |
|
|
|
|
2.93 |
% |
|
|
|
|
|
2.76 |
% |
|
|
|
|
|
2.89 |
% |
| Net interest margin |
|
|
|
|
3.34 |
% |
|
|
|
|
|
3.17 |
% |
|
|
|
|
|
3.62 |
% |
____________________
- Short-term investments consist of federal funds sold and
interest bearing deposits that we maintain at other financial
institutions.
- Stock consists of FHLB stock and Federal Reserve Bank of San
Francisco stock.
- Loans include the average balance of nonaccrual loans.
CONSOLIDATED AVERAGE BALANCES AND YIELD
DATA(Dollars in thousands)
(Unaudited)
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Nine Months
Ended |
| |
September 30, 2020 |
|
September 30, 2019 |
| |
Average Balance |
|
Interest Earned/
Paid |
|
Average Yield/
Rate |
|
Average Balance |
|
Interest Earned/
Paid |
|
Average Yield/
Rate |
| Interest earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
Short-term investments(1) |
$ |
297,636 |
|
|
$ |
894 |
|
|
0.40 |
% |
|
$ |
253,058 |
|
|
$ |
4,439 |
|
|
2.35 |
% |
|
Securities available for sale and stock(2) |
35,231 |
|
|
693 |
|
|
2.63 |
% |
|
37,047 |
|
|
808 |
|
|
2.92 |
% |
|
Loans(3) |
1,253,805 |
|
|
44,777 |
|
|
4.77 |
% |
|
1,080,278 |
|
|
44,152 |
|
|
5.46 |
% |
|
Total interest-earning assets |
1,586,672 |
|
|
46,364 |
|
|
3.90 |
% |
|
1,370,383 |
|
|
49,399 |
|
|
4.82 |
% |
| Noninterest-earning assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and due from banks |
17,490 |
|
|
|
|
|
|
15,741 |
|
|
|
|
|
|
All other assets |
25,540 |
|
|
|
|
|
|
26,845 |
|
|
|
|
|
| Total assets |
1,629,702 |
|
|
|
|
|
|
1,412,969 |
|
|
|
|
|
| Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing checking accounts |
$ |
105,837 |
|
|
$ |
141 |
|
|
0.18 |
% |
|
$ |
105,265 |
|
|
$ |
505 |
|
|
0.64 |
% |
|
Money market and savings accounts |
429,133 |
|
|
2,221 |
|
|
0.69 |
% |
|
450,342 |
|
|
6,123 |
|
|
1.82 |
% |
|
Certificates of deposit |
258,469 |
|
|
4,082 |
|
|
2.11 |
% |
|
264,557 |
|
|
4,377 |
|
|
2.21 |
% |
|
Other borrowings |
76,342 |
|
|
378 |
|
|
0.66 |
% |
|
36,300 |
|
|
698 |
|
|
2.57 |
% |
|
Junior subordinated debentures |
17,527 |
|
|
498 |
|
|
3.80 |
% |
|
17,527 |
|
|
684 |
|
|
5.22 |
% |
|
Total interest bearing liabilities |
887,308 |
|
|
7,320 |
|
|
1.10 |
% |
|
873,991 |
|
|
12,387 |
|
|
1.89 |
% |
| Noninterest bearing liabilities |
|
|
|
|
|
|
|
|
|
|
|
| Demand deposits |
571,976 |
|
|
|
|
|
|
374,713 |
|
|
|
|
|
| Accrued expenses and other liabilities |
19,159 |
|
|
|
|
|
|
18,837 |
|
|
|
|
|
| Shareholders' equity |
151,259 |
|
|
|
|
|
|
145,428 |
|
|
|
|
|
| Total liabilities and shareholders' equity |
1,629,702 |
|
|
|
|
|
|
1,412,969 |
|
|
|
|
|
| Net interest income |
|
|
$ |
39,044 |
|
|
|
|
|
|
$ |
37,012 |
|
|
|
| Net interest income/spread |
|
|
|
|
2.80 |
% |
|
|
|
|
|
2.93 |
% |
| Net interest margin |
|
|
|
|
3.29 |
% |
|
|
|
|
|
3.61 |
% |
____________________
- Short-term investments consist of federal funds sold and
interest bearing deposits that we maintain at other financial
institutions.
- Stock consists of FHLB stock and Federal Reserve Bank of San
Francisco stock.
- Loans include the average balance of nonaccrual loans.
For more information contactCurt Christianssen, Chief Financial
Officer, 714-438-2500
Pacific Mercantile Bancorp (NASDAQ:PMBC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Pacific Mercantile Bancorp (NASDAQ:PMBC)
Historical Stock Chart
From Apr 2023 to Apr 2024
