This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Pacific Mercantile Bancorp Reports On Capital Augmentation Initiatives

COSTA MESA, Calif., Feb. 1, 2011 (GLOBE NEWSWIRE) -- Pacific Mercantile Bancorp (Nasdaq:PMBC) today reported on the status of its efforts to increase the shareholders equity and improve the financial condition of its wholly-owned banking subsidiary, Pacific Mercantile Bank (the "Bank").

As previously reported, on August 31, 2010, the Bank consented to the issuance of a Final Order (the "Order") by the California Department of Financial Institutions (the "DFI"). Among other things, that Order required the Bank to reduce its non-performing assets and increase the ratio of the Bank's tangible equity-to-tangible assets to 9.0% by January 31, 2011 by raising additional capital, generating earnings or reducing the Bank's tangible assets, or a combination thereof.

Although we were not be able to meet those capital requirements by January 31, 2011, the DFI has notified us that it will not take action against the Bank at this time in order to enable us to continue our efforts to achieve the capital requirements of the Order. We understand that this decision is based on improvements made to date in the financial condition of the Bank that are attributable to reductions in non-performing assets and improvements in the Bank's capital ratio.

Improvement in the Bank's Financial Condition.

Decreases in Non-Performing Assets. Between September 30, 2010 and December 31, 2010, the Bank reduced the volume of its non-performing loans by approximately $22 million or 50%, and its total non-performing assets by approximately $9.8 million or 15%. 

Improvement in Tangible Equity-to-Tangible Assets Ratio. Moreover, based on data contained in the Bank's Call Report filed with the FDIC, its ratio of tangible equity-to-tangible assets had increased to 7.4% at December 31, 2010 from 6.0% at August 31, 2010, the date of the DFI Order.

Well-Capitalized Banking Institution. Additionally, as of December 31, 2010 the Bank's capital ratios continued to exceed the federal regulatory capital ratios that are required to be met for a bank to be rated as a "well-capitalized" banking institution under the FDIC's prompt corrective action regulations:

  At December 31, 2010
Pacific Mercantile Bank Bank's Actual Capital Ratios (1) Capital Ratios to be Rated as Well Capitalized
     
Total capital to risk based assets 10.94% 10.0%
Tier 1 capital ratio to risk asset 9.68% 6.0%
Leverage ratio (Tier 1 capital to average asset) 7.41% 5.0%
 
(1)      Unaudited; taken from the Bank's December 31, 2010 Call Report as filed with the FDIC.

Substantial Liquidity. The Bank continues to have substantial liquidity, which totaled approximately $210 million, or 18% of the Bank's total assets, at December 31, 2010, including approximately $32 million of cash and cash equivalents and $165 million of securities available for sale.

1 of 3

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,288.63 +155.93 0.86%
S&P 500 2,117.39 +12.89 0.61%
NASDAQ 5,008.0960 +44.5690 0.90%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs