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March 15, 2021, 6:07 a.m. EDT

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(EDGAR Online via COMTEX) -- ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview







        Table of     Contents
        


Results of Operations







                                                       Year Ended December 31,
                                                                                                  2020 vs. 2019             2019 vs. 2018
                                              2020              2019              2018               % Change                  % Change
                                                                                 (Dollars in thousands)
        Interest income                    $ 60,598          $ 65,677          $ 62,542                   (7.7) %                       5.0  %
        Interest expense                      8,616            16,121            13,620                  (46.6) %                      18.4  %
        Provision for loan and lease
        losses                                9,050             9,150                 -                   (1.1) %                     100.0  %
        Non-interest income                   6,337             5,588             4,635                   13.4  %                      20.6  %
        Non-interest expense                 36,847            38,179            36,970                   (3.5) %                       3.3  %
        Income tax provision (benefit)        4,088             2,135           (10,752)                  91.5  %                    (119.9) %
        Net income allocable to common
        shareholders                       $  8,334          $  5,680          $ 27,339                   46.7  %                     (79.2) %
        


Interest Income

Interest Expense







          Table of     Contents
                                                                                                                       Year Ended December 31,
                                                                     2020                                                        2019                                                       2018
                                                                   Interest            Average                                 Interest            Average                                Interest            Average
                                                Average             Earned/             Yield/              Average             Earned/            Yield/              Average             Earned/            Yield/
                                                Balance              Paid                Rate               Balance              Paid               Rate               Balance              Paid               Rate
                                                                                                                       (Dollars in thousands)
        Interest earning assets
        Short-term investments(1)            $   286,400          $    959                 0.33  %       $   239,268          $  5,264                2.20  %       $   195,736          $  3,756                1.92  %
        Securities available for sale and
        stock(2)                                  36,470               939                 2.57  %            36,716             1,065                2.90  %            39,744             1,160                2.92  %
        Loans(3)                               1,255,461            58,700                 4.68  %         1,100,082            59,348                5.39  %         1,071,874            57,626                5.38  %
        Total interest-earning assets          1,578,331            60,598                 3.84  %         1,376,066            65,677                4.77  %         1,307,354            62,542                4.78  %
        Noninterest-earning assets
        Cash and due from banks                   17,247                                                      15,975                                                     16,785
        All other assets(3)                       24,762                                                      26,528                                                     14,577
        Total assets                         $ 1,620,340                                                 $ 1,418,569                                                $ 1,338,716
        Interest-bearing liabilities:
        Interest-bearing checking accounts   $   113,711          $    172                 0.15  %       $   109,234          $    645                0.59  %       $    69,841               363                0.52  %
        Money market and savings accounts        416,953             2,439                 0.58  %           438,814             7,635                1.74  %           412,366             6,358                1.54  %
        Certificates of deposit                  248,801             4,918                 1.98  %           265,859             6,002                2.26  %           315,189             5,349                1.70  %
        Other borrowings                          62,948               464                 0.74  %            39,315               947                2.41  %            36,209               705                1.95  %
        Junior subordinated debentures            17,527               623                 3.55  %            17,527               892                5.09  %            17,527               845                4.82  %
        Total interest bearing liabilities       859,940             8,616                 1.00  %           870,749            16,121                1.85  %           851,132            13,620                1.60  %
        Noninterest-bearing liabilities
        Demand deposits                          588,557                                                     382,198                                                    348,923
        Accrued expenses and other
        liabilities                               18,944                                                      19,032                                                     10,931
        Shareholders' equity                     152,899                                                     146,590                                                    127,730
        Total liabilities and shareholders'
        equity                               $ 1,620,340                                                 $ 1,418,569                                                $ 1,338,716
        Net interest income                                       $ 51,982                                                    $ 49,556                                                   $ 48,922
        Net interest income/spread                                                         2.84  %                                                    2.92  %                                                    3.18  %
        Net interest margin                                                                3.29  %                                                    3.60  %                                                    3.74  %
        


(1)Short-term investments consist of federal funds sold and interest bearing deposits that we maintain at other financial institutions.

Table of Contents







                                                                                    2020 Compared to 2019                                                       2019 Compared to 2018
                                                                            Increase (Decrease) due to Changes in                                       Increase (Decrease) due to Changes in
                                                                                                                       Total                                                                        Total
                                                                                                                      Increase                                                                     Increase
                                                                        Volume                     Rates             (Decrease)                     Volume                      Rates             (Decrease)
                                                                                                                          (Dollars in thousands)
        Interest income
        Short-term investments(1)                            $        871                       $  (5,176)         $    (4,305)         $         909                        $     599          $     1,508
        Securities available for sale and stock(2)                     (7)                           (119)                (126)                   (88)                              (7)                 (95)
        Loans                                                       7,808                          (8,456)                (648)                 1,521                              201                1,722
        Total earning assets                                        8,672                         (13,751)              (5,079)                 2,342                              793                3,135
        Interest expense
        Interest-bearing checking accounts                             25                            (498)                (473)                   227                               55                  282
        Money market and savings accounts                            (363)                         (4,833)              (5,196)                   425                              852                1,277
        Certificates of deposit                                      (369)                           (715)              (1,084)                  (926)                           1,579                  653
        Borrowings                                                    386                            (869)                (483)                    64                              178                  242
        Junior subordinated debentures                                  -                            (269)                (269)                                                     47                   47
        Total interest-bearing liabilities                           (321)                         (7,184)              (7,505)                  (210)                           2,711                2,501
        Net interest income                                  $      8,993                       $  (6,567)         $     2,426          $       2,552                        $  (1,918)         $       634
        


(1)Short-term investments consist of federal funds sold and interest bearing deposits that we maintain at financial institutions.

Mar 15, 2021

COMTEX_382712371/2041/2021-03-15T06:07:19

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