Pacific Mercantile Bancorp (PMBC) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $30.53 million, or $ 1.33 a share in the quarter, against a net profit of $0.32 million, or $0.03 a share in the last year period.
Revenue during the quarter plunged 105.49 percent to $0.49 million from $8.87 million in the previous year period. Net interest income for the quarter rose 10.56 percent over the prior year period to $9.19 million. Non-interest income for the quarter rose 87.54 percent over the last year period to $1.05 million.
Efficiency ratio for the quarter improved to 94.57 percent from 96.38 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
“These loan losses are unacceptable. We have taken and continue to take steps necessary to deliver improved performance that creates value for shareholders,” said Tom Vertin, president and chief executive officer of Pacific Mercantile Bancorp. “We have increased our reserves for loan losses after a comprehensive credit review that our new Chief Credit Officer commenced upon joining the Bank on May 31, 2016. Our new credit team has now reviewed all 679 of the Bank's commercial and commercial real estate credits, assisted by three independent loan review firms, and we have made a number of changes to strengthen our overall credit administration.”
Assets fall, liabilities grow
Total assets stood at $1,075.15 million as on Sep. 30, 2016, down 0.79 percent compared with $1,083.67 million on Sep. 30, 2015. On the other hand, total liabilities stood at $974.57 million as on Sep. 30, 2016, up 1.32 percent from $961.86 million on Sep. 30, 2015.
Deposits outpace loan growth
Deposits stood at $950.17 million as on Sep. 30, 2016, up 2.46 percent compared with $927.31 million on Sep. 30, 2015.
Investments stood at $55.17 million as on Sep. 30, 2016, up 1.21 percent or $0.66 million from year-ago. Shareholders equity stood at $100.58 million as on Sep. 30, 2016, down 17.43 percent or $21.23 million from year-ago.
Return on average assets was negative at 10.66 percent in the quarter against a positive 0.12 percent in the last year period. Return on average equity was negative at 92.18 percent in the quarter against a positive 1.05 percent in the last year period.
Nonperforming assets moved up 28.35 percent or $5.98 million to $27.08 million on Sep. 30, 2016 from $21.10 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 2.52 percent in the quarter, up from 1.95 percent in the last year period.
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