Pacific Mercantile Bancorp (PMBC) has reported 97.44 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.31 million, or $0.01 a share in the quarter, compared with $12.07 million, or $0.53 a share for the same period last year.
Revenue during the quarter went up marginally by 2.29 percent to $9.42 million from $9.20 million in the previous year period. Net interest income for the quarter rose 6.67 percent over the prior year period to $9.15 million. Non-interest income for the quarter fell 57.67 percent over the last year period to $0.26 million.
Efficiency ratio for the quarter deteriorated to 98.41 percent from 94.40 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
Commenting on the results, Tom Vertin, President & Chief executive officer of Pacific Mercantile Bancorp, said, “We are very pleased with the continuing direction of the Company as demonstrated by our improved performance in the fourth quarter, which was driven by an exceptional quarter of business development, improved credit quality and disciplined expense management. Our new client acquisition activities in the fourth quarter resulted in 35% annualized growth in total loans and 21% annualized growth in total deposits, with all of the deposit growth driven by core deposits."
Liabilities outpace assets growth
Total assets stood at $1,140.69 million as on Dec. 31, 2016, up 7.37 percent compared with $1,062.39 million on Dec. 31, 2015. On the other hand, total liabilities stood at $1,040.97 million as on Dec. 31, 2016, up 12.12 percent from $928.47 million on Dec. 31, 2015. Deposits outpace loan growth
Deposits stood at $1,001.30 million as on Dec. 31, 2016, up 12.02 percent compared with $893.84 million on Dec. 31, 2015. Noninterest-bearing deposit liabilities were $332.57 million or 33.21 percent of total deposits on Dec. 31, 2016, compared with $249.68 million or 27.93 percent of total deposits on Dec. 31, 2015.
Investments stood at $51.65 million as on Dec. 31, 2016, down 14.51 percent or $8.77 million from year-ago. Shareholders equity stood at $99.72 million as on Dec. 31, 2016, down 25.54 percent or $34.20 million from year-ago.
Return on average assets moved down 433 basis points to 0.11 percent in the quarter from 4.44 percent in the last year period. At the same time, return on average equity decreased 3782 basis points to 1.22 percent in the quarter from 39.04 percent in the last year period.
Nonperforming assets moved down 3.44 percent or $0.89 million to $24.90 million on Dec. 31, 2016 from $25.78 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 2.18 percent in the quarter, down from 2.43 percent in the last year period.
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