This Day On The Street
Continue to site
ADVERTISEMENT
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 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.

Overview

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.

1 of 5

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
PMBC $7.16 0.00%
AAPL $132.54 0.88%
FB $80.54 0.07%
GOOG $540.11 -0.44%
TSLA $247.73 0.86%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs