This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pacific Mercantile Bancorp To Restate Financial Results For The Quarter And Nine Months Ended September 30, 2009

Pacific Mercantile Bancorp (NASDAQ:PMBC) (the “Company”) announced today that, based on a finding in a recent regulatory examination of Pacific Mercantile Bank, the Company’s wholly owned subsidiary (the “Bank”), the Company has determined that it will restate its unaudited consolidated financial statements as of and for the quarter and nine months ended September 30, 2009 that were contained in its Quarterly Report on Form 10-Q for its third quarter ended September 30, 2009. The restatement involves an increase of approximately $3.3 million in the Bank’s allowance for loan losses as of September 30, 2009, resulting from our decision, made on the basis of that regulatory examination, to give greater weight to qualitative factors in the determination of the amount of the allowance for loan losses.

“On a positive note, we are seeing a recent trend that leads us to believe that the condition of the Bank’s loan portfolio is improving,” stated Raymond E. Dellerba, the Company’s President and CEO.
  • Loan delinquencies (loans past due from 1-89 days), which totaled $7.6 million, or 0.90% of total loans, at September 30, 2009, declined by approximately $5.0 million, or 65%, to approximately $2.6 million, or 0.31% of total loans, at December 31, 2009; and
  • Non-accrual loans (consisting mostly of loans greater than 90 days past due), which totaled approximately $60.0 million at September 30, 2009, declined by approximately $8.0 million, or 13.3%, to approximately $52 million at December 31, 2009.

“We are encouraged by this trend, which reflects not only a gradual improvement in economic conditions, but also our decision, in 2007, to reduce real estate interim construction lending, our concerted loan collection efforts and our implementation of more stringent loan underwriting standards,” added Mr. Dellerba. "However, there is no assurance that this trend will continue, as the future direction of the economy and the speed of the recovery remain uncertain. Moreover, we are not yet able to determine the extent of the impact that this trend will have on our future operating results and we expect that the provision for loan losses will continue to represent a substantial expense, as non-performing loans will continue for some time to remain high relative to pre-recession levels.”

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PMBC $7.52 -0.13%
AAPL $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%
TSLA $232.32 -3.92%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs