Home > Boards > US Listed > Banking and Finance > Pacific Mercantile Bancorp (PMBC)

Pacific Mercantile Bancorp Reports on Capital Augmentation Initiatives

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (2) | Next 10 | Previous | Next
56Chevy Member Profile
Member Level 
Followed By 118
Posts 5,068
Boards Moderated 3
Alias Born 04/10/08
160x600 placeholder
Pacific Mercantile Bank Provides $3.0 Million in Financing to Brand Value Accelerator GlobeNewswire Inc. - 6/27/2019 8:00:00 AM
Initial Statement of Beneficial Ownership (3) Edgar (US Regulatory) - 6/18/2019 4:05:15 PM
Initial Statement of Beneficial Ownership (3) Edgar (US Regulatory) - 6/18/2019 4:04:51 PM
Pacific Mercantile Bank Provides $6.4 Million Credit Facility to Culinary International LLC GlobeNewswire Inc. - 6/13/2019 8:00:00 AM
Pacific Mercantile Bank Provides a Multi-Million Dollar Credit Facility to Performance Inflatables Company GlobeNewswire Inc. - 6/11/2019 8:00:00 AM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/21/2019 4:55:06 PM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 5/17/2019 4:11:46 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 5/16/2019 5:11:12 PM
Pacific Mercantile Bancorp Announces Election of Shannon F. Eusey and Michele S. Miyakawa to Board of Directors GlobeNewswire Inc. - 5/16/2019 8:00:00 AM
Pacific Mercantile Bank Provides $5.9 Million in Financing to RedRock Security & Cabling, Inc. GlobeNewswire Inc. - 5/9/2019 8:00:00 AM
Quarterly Report (10-q) Edgar (US Regulatory) - 5/3/2019 3:01:56 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 5/2/2019 11:21:00 AM
Pacific Mercantile Bancorp to Participate in the D.A. Davidson Financial Institutions Conference GlobeNewswire Inc. - 5/2/2019 8:00:00 AM
Current Report Filing (8-k) Edgar (US Regulatory) - 4/26/2019 7:35:18 AM
Pacific Mercantile Bank Provides $6.5 Million Credit Facility to Survival Systems International, Inc. GlobeNewswire Inc. - 4/25/2019 8:00:00 AM
Pacific Mercantile Bancorp Reports First Quarter Operating Results GlobeNewswire Inc. - 4/22/2019 8:00:00 AM
Current Report Filing (8-k) Edgar (US Regulatory) - 4/22/2019 6:44:18 AM
Proxy Statement (definitive) (def 14a) Edgar (US Regulatory) - 4/15/2019 12:14:30 PM
Proxy Statement - Notice of Shareholders Meeting (preliminary) (pre 14a) Edgar (US Regulatory) - 3/28/2019 4:49:06 PM
Current Report Filing (8-k) Edgar (US Regulatory) - 3/21/2019 7:14:25 AM
Statement of Changes in Beneficial Ownership (4) Edgar (US Regulatory) - 3/14/2019 6:25:15 PM
Annual Report (10-k) Edgar (US Regulatory) - 3/11/2019 4:51:38 PM
P2Binvestor Solves Critical Working Capital Need of a California Business PR Newswire (US) - 3/7/2019 9:00:00 AM
Pacific Mercantile Bank Provides Financing to EMU Films GlobeNewswire Inc. - 3/6/2019 8:00:00 AM
Pacific Mercantile Bancorp Appoints Paul W. Taylor to Board of Directors GlobeNewswire Inc. - 3/5/2019 10:03:54 AM
56Chevy Member Level  Thursday, 02/10/11 09:36:44 PM
Re: None
Post # of 51 
Pacific Mercantile Bancorp Reports on Capital Augmentation Initiatives

GlobeNewswirePacific 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 Capital Ratios to be Rated Bank's Actual as Well Pacific Mercantile Bank Capital Ratios(1) 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.

Capital Augmentation Efforts

With the assistance of a nationally recognized investment banking firm, we have been exploring alternatives for meeting the capital requirements of the DFI Order. While we believe that we will be able to meet those capital requirements, we cannot provide assurances as to when or even if we will succeed in doing so. Moreover, the DFI is not precluded from taking enforcement action against the Bank if its financial condition were to worsen or if we are do not succeed in meeting the capital requirements of the DFI Order in the near term.



Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (2) | Next 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
X
Current Price
Change
Volume
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist