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COSTA MESA, Calif., March 7, 2014 (GLOBE NEWSWIRE) -- Pacific Mercantile Bancorp (Nasdaq:PMBC) today reported its results of operations for the fourth quarter and year ended December 31, 2013.
Financial results for the three months ended December 31, 2013 include the following items:
A $5.0 million charge related to our exit from the mortgage banking business, which primarily includes severance and fees related to contract and lease terminations;
A $3.4 million provision for loan and lease losses primarily reflecting the impact of a credit quality downgrade of one legacy commercial loan relationship; and
A $7.1 million tax provision related to an increase in the valuation allowance held against our deferred tax assets.
In the three months ended December 31, 2013, we incurred a net loss of $15.1 million, or $0.79 per share, as compared to net income of $1.1 million, or $0.06 per diluted share in the same three months of 2012. During the year ended December 31, 2013, we incurred a net loss of $23.3 million, or $1.28 per share, as compared to net income of $8.7 million, or $0.55 per diluted share for the year ended December 31, 2012. The net losses were primarily attributable to increases in our provision for loan losses, increases in noninterest expense, an increase in our income tax provision, and a charge related to the discontinuation of our mortgage banking business. Another factor contributing to our net loss for the year ended December 31, 2013 was the operating loss we suffered from operations of our mortgage banking business during 2013, which is discussed further under Results of Operations — Discontinued Operations.
Additionally, non-performing loans declined to $11.5 million at December 31, 2013, down from $17.7 million at December 31, 2012. This decrease was primarily attributable to, among other things, restoration to accrual status of a commercial real estate loan, the foreclosure of certain nonperforming loans and their transfer to other real estate owned, and impairment write downs based on our loan impairment analyses.
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