Costa Mesa-based Pacific Mercantile Bancorp said Monday that it plans to close its wholesale mortgage banking unit due to growing costs amid rising interest rates.
The mortgage business faced challenges to make it profitable,”particularly in the face of the changing interest and market environment,” according to a bank statement.
Spokeswoman Barbara Palermo was not immediately available for comment.
Shares of the stock closed Monday at $14.24, up 7 cents.
Pacific Mercantile, which has $894 million in assets, plans to focus on expanding its commercial banking business.
The wholesale mortgage loan division will close around Sept. 30, with a small group of employees set to be retained to wind down the operation starting immediately.
Pacific Mercantile said it’s hired four commercial loan officers to join the bank in July. It plans to hire more.
The bank, which opened six years ago, operates four branches in Orange County, three in Los Angeles County and one in San Diego County.
