Profile: Pacific Mercantile Bancorp (PMBC.O)
2 Jul 2015
Pacific Mercantile Bancorp, incorporated on January 7, 2000, is the holding company for Pacific Mercantile Bank (the Bank). The Company's business operations are conducted by the Bank. The Bank conducts a commercial banking business in Orange, Los Angeles, San Bernardino and San Diego counties in Southern California. The Bank provides small and medium-size businesses, professional firms and individuals with a range of products and services, such as deposit accounts, commercial and consumer loans, cash management services and online banking services.
The Bank offers its customers a number of different loan products, including commercial loans and credit lines, accounts receivable and inventory financing, SBA guaranteed business loans, and owner-occupied commercial real estate loans. The loans outstanding as of December 31, 2014 is as follows: commercial loans an amount of $301,746 thousand; commercial real estate loans-owner occupied is $212,515 thousand; commercial real estate loans-all other is $146,676 thousand; residential mortgage loans, multi-family is $95,276 thousand; residential mortgage loans, single family is $64,326 thousand; land development loans is $7,745 thousand, and consumer loans is $9,687 thousand. The commercial loans the Bank offer generally include short-term secured and unsecured business and commercial loans with maturities ranging from 12 to 24 months, accounts receivable financing for terms of up to 24 months, equipment loans which generally amortize over a period of up to seven years and SBA guaranteed business loans with terms of up to 10 years. The interest rates on these loans are adjustable and vary-based on market conditions and credit risk.
The Bank offers an array of banking and financial services to support the needs of business banking clients. These services include online business banking portal which allows clients to conduct online transactions and access account information; collection services such as remote deposit capture services (PMB xPress Deposit), remittance payments (Lockbox) and incoming ACH and wire reporting and notification; payable services such as checks, wire transfer and ACH origination, business bill pay service, and business credit cards and also provide courier and onsite vault services for those clients with cash needs; fraud prevention services such as Positive Pay, ACH Positive Pay and transactional alerts.
The Bank's investments primarily include securities available for sale, which consist of the United States treasury securities, mortgage backed securities issued by the United States agencies, collateralized mortgage obligations issued by non-agencies, asset backed security and mutual funds. Its mortgage backed securities issued by the United States agencies was around $53,739 thousand, collateralized mortgage obligations issued by non-agencies was around $777 thousand, asset backed security was around $1,650 thousand, and Mutual funds was around $4,760 thousand.
Sources of Funds
The Bank's sources of funds include deposits, and borrowings and contractual obligations. At December 31, 2014, the Bank had $167.1 million in interest bearing deposits at other financial institutions. At December 31, 2014, the Bank's borrowings and contractual obligations consists of Federal Home Loan Bank (FHLB) advances short-term of around $29,500 thousand and FHLB advances long-term of around $10,000 thousand. As of December 2014, the Bank's deposits include noninterest-bearing checking accounts of $206,295 thousand; interest-bearing checking accounts of $36,281 thousand; money market and savings deposits of $170,047 thousand, and certificates of deposit of $431,789 thousand.
The Bank competes with Bank of America, Wells Fargo Bank, JPMorgan Chase, Union Bank of California, Bank of the West, U. S. Bancorp, Comerica Bank, Citibank, OneWest Bank, City National Bank, Citizens Business Bank, Manufacturers Bank and California Bank and Trust.
Pacific Mercantile Bancorp
949 S Coast Dr Fl 3
COSTA MESA CA 92626-7737