Pacific Mercantile Bancorp Reports Second Quarter 2010 Operating Results
COSTA MESA, Calif., Aug. 18, 2010 (GLOBE NEWSWIRE) -- Pacific Mercantile Bancorp (Nasdaq:PMBC) today reported its results of operations for the second quarter and six months ended June 30, 2010.
During the three and six months ended June 30, 2010 our banking operations generated improvements in net interest income and non-interest expense and we also were able to reduce the provisions we made for loan losses, as compared to the same interim periods of 2009. Moreover, although those improvements were more than offset by increases in non-interest expense, we were able to reduce our pre-tax losses in the three and six months ended June 30, 2010 to $3.0 million and $2.8 million, respectively, from $9.4 million and $11.7 million in the same three and six months of 2009.However, management, the Audit Committee and the Board of Directors determined that we should recognize a $9.0 million non-cash charge in the second quarter of 2010 to provide an additional valuation allowance against the Company's deferred tax asset, which increased our net losses to $12.0 million for the quarter and six months ended June 30, 2010. Since a valuation allowance is established by means of a non-cash charge, this additional valuation allowance will not affect the Company's cash or liquidity in any way. In addition, notwithstanding the net losses, the Company and the Bank continue to qualify as well-capitalized institutions under applicable bank regulatory guidelines. The deferred tax asset represents timing differences in the recognition of certain tax benefits for accounting and tax purposes, including the expected value of its future income tax savings that will be available to the Company to offset its expected future taxable income with the carry forward of its net operating losses. The Company decided to establish the valuation allowance against the deferred tax asset in part because it is uncertain when it will realize such tax savings. In the future, the Company may be able to reduce some or all of the valuation allowance upon a determination that it has become more likely, than not, that it will be able to realize such tax savings. In that event, we would be able to reduce our future tax liability to the extent of those savings.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV