Profile: Pacific Mercantile Bancorp (PMBC.O)
19 Sep 2014
Pacific Mercantile Bancorp is the holding company for Pacific Mercantile Bank (the Bank). All of 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 Company operates in two segments: the commercial banking division and the mortgage banking division. The commercial bank segment provides small and medium-size businesses, professional firms and individuals with a range of products and services, such as various types of deposit accounts, various types of commercial and consumer loans, cash management services, and online banking services. The mortgage banking segment originates and purchases residential mortgages that, for the most part, are resold within 30 days to long-term investors in the secondary residential mortgage market. In March 2013, an investor group, comprised of Carpenter Community BancFund LP and Carpenter Community BancFund-A LP, acquired a 13.325% stake in Pacific Mercantile Bancorp.
At December 31, 2011, the Company’s net loans (which exclude loans held for sale) and total deposits were $641 million and $862 million, respectively. As of December 31, 2011, it operated seven full service commercial banking offices (which it refers to as financial centers) and an online banking branch at www.pmbank.com.
The Company offers various banking and financial services for its business banking customers. Its services include financial management tools and services that include multiple account control, account analysis, transaction security and verification, wire transfers, bill payment, payroll and lock box services, most of which are available at its Internet Website, www.pmbank.com, and automated clearinghouse (ACH) origination services, which enable businesses that charge for their services or products on a recurring monthly or other periodic basis, to obtain payment from their customers through an automatic, pre-authorized debit from their customers’ bank accounts anywhere in the United States.
The Company also offers a range of services and products, such as online banking services, automated teller machines (ATMs), night drop services, courier and armored car services that enables its business customers to order and receive cash without having to travel to its banking offices, and Remote Deposit Capture (PMB Xpress Deposit), which enables business customers to image checks they receive for electronic deposit at the Bank, thereby eliminating the need for customers to travel to its offices to deposit checks into their accounts. Its customers can access its online bank at www.pmbank.com to use financial cash management tools and services, view account balances and account history, transfer funds between accounts, pay bills and order wire transfers of funds, transfer funds from credit lines to deposit accounts, make loan payments, print bank statements, place stop payments, and purchase certificates of deposit
The Company offers its customers a range of loan products, including commercial loans and credit lines, accounts receivable and inventory financing, small business administration (SBA) guaranteed business loans, commercial real estate, residential mortgage loans, and consumer loans. The commercial loans it offers 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 18 months, equipment and automobile term loans and leases, which generally amortize over a period of up to seven years, and SBA guaranteed business loans with terms of up to 10 years.
Commercial loans, including accounts receivable financing, generally are made to businesses that have been in operation for at least three years. The Company also offers asset-based lending products. The majority of its commercial real estate loans are secured by first trust deeds on nonresidential real property. The Company makes multi-family residential mortgage loans primarily in Southern California for terms up to 30 years. Residential mortgage loans consist of loans secured by single-family residential properties. The Company offers a variety of loan products to the specific needs of borrowers, including fixed rate and adjustable rate, conventional and government insured (Federal Housing Administration (FHA) and Veteran Affairs (VA)) mortgages with either 30-year or 15-year terms.
Mortgage loans originated by the Bank are generally secured by a first lien on the underlying property. The Bank sells a majority of the mortgage loans it originates to various investors in the secondary market and does not service these loans after sale of the loans. The Company offers a variety of loan and credit products to consumers, including personal installment loans, lines of credit, credit cards, and to high net-worth individuals for estate planning.
As of December 31, 2011, the Company’s total securities available-for-sale included $149.9 million. At December 31, 2011, its portfolio of securities available-for-sale included mortgage-backed securities issued by the United States agencies, municipal securities, non-agency collateralized mortgage obligations, asset-backed securities, and mutual fund.
Sources of Funds
Deposits are the Bank’s principal source of funds for making loans and acquiring other interest earning assets. As of December 31, 2011, the types of deposit offered by the Company included noninterest-bearing checking accounts, interest-bearing checking accounts, money market and savings deposits, and certificates of deposit.
The Company 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
THIRD FLOOR, 949 SOUTH COAST DRI
COSTA MESA CA 92626