Pacific Mercantile Bancorp Formalizes Regulatory Agreements
COSTA MESA, Calif., Sept. 7, 2010 (GLOBE NEWSWIRE) -- Pacific Mercantile Bancorp (Nasdaq:PMBC) today reported that the Company and its wholly-owned banking subsidiary, Pacific Mercantile Bank (the "Bank"), have entered into a Written Agreement with the Federal Reserve Bank of San Francisco (the "FRB"), effective as of August 31, 2010. On that same date the board of directors of the Bank consented to the issuance of a Final Order by the California Department of Financial Institutions (the "DFI").
The Agreement with the FRB (the "FRB Agreement") and the Order issued by the DFI (the "DFI Order") require us to adopt and implement formal plans, as well as to continue to implement other measures that we previously adopted, to address the adverse consequences that the economic recession has had on the quality of our loan portfolio and our operating results, and to increase our capital to strengthen our ability to weather any further adverse conditions that could arise if the hoped-for improvement in the economy does not materialize.
The FRB Agreement and DFI Order contain substantially similar provisions. Among other things, they require the Boards of Directors of the Company and the Bank to prepare and submit written plans to the FRB and the DFI that address: (i) strengthening board oversight of the management and the operations of the Bank; (ii) improving the Bank's position with respect to its problem assets; (iii) maintaining adequate reserves for loan and lease losses in accordance with applicable supervisory guidelines; and (iv) strengthening the capital positions of the Bank and the Company. The Bank also may not pay dividends to the Company without the prior approval of the FRB and the DFI and, without the approval of the FRB, the Company may not declare or pay cash dividends, repurchase any of its shares, make payments on its trust preferred securities or incur or guarantee any debt.
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