Pacific Mercantile Swings to ProfitsTuesday, February 28, 2012
Costa Mesa-based Pacific Mercantile Bancorp Inc. swung back to profits for the fourth quarter of 2011 and the full year.
The bank made $7.6 million in the fourth quarter compared with a loss of $2.3 million a year earlier.
Pacific Mercantile had $11.2 million in net income for the full year, reversing a $15 million loss in 2010.
Pacific Mercantile is the second-largest bank based in Orange County, with total assets of about $1 billion.
Net interest income for the fourth quarter fell 5% to $7.8 million. Non-interest income doubled to $2.8 million. About $2.5 million of that came from mortgage banking.
The bank brought on about 90 employees for its mortgage business last year. The division made $370 million worth of loans for the full year, up 70% from 2010. It generated $7.7 million in revenue for the year, up 60% from a year earlier.
“Banking revenues, consisting of net interest income and non-interest income increased every quarter during 2011, and by nearly 10% in the fourth quarter of 2011,” Chief Executive Raymond Dellerba said in a statement. “We were able to reverse the provisions made for loan losses in 2011, as compared to provisions of $8.3 million made for loan losses in 2010.”
The bank had about $657 million in loans at year-end, down 11% from $740 million at the same time in 2010.
Deposits totaled $862 million at the end of 2011, about 6% increase from the same point in 2010.
The bank recently received approval from its shareholders to sell $15.5 million worth of shares of common stock to the funds of Irvine-based investment group Carpenter & Co. The shareholders also approved an increase in the number of common stock shares to 85 million shares to enable the bank holding company to complete the second phase of its pending equity financing.