NasdaqGS:PMBC

Stock Analysis Report

Pacific Mercantile Bancorp

Executive Summary

Pacific Mercantile Bancorp operates as the holding company for Pacific Mercantile Bank that provides a range of commercial banking products and services to small and medium-size businesses, professional firms, and individuals in Southern California, the United States.

Snowflake

Fundamentals

Flawless balance sheet and slightly overvalued.

Risks

  • Pacific Mercantile Bancorp is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Pacific Mercantile Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.1%

NasdaqGS:PMBC

-1.8%

US Banks

-1.6%

US Market


1 Year Return

-25.5%

NasdaqGS:PMBC

-16.1%

US Banks

-3.0%

US Market

PMBC underperformed the Banks industry which returned -16.1% over the past year.

PMBC underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

PMBCIndustryMarket
7 Day-2.1%-1.8%-1.6%
30 Day-6.8%-10.1%-5.7%
90 Day-4.9%-5.0%0.2%
1 Year-25.5%-25.5%-13.7%-16.1%-0.8%-3.0%
3 Year1.2%1.2%37.9%28.5%38.1%29.1%
5 Year7.4%7.4%49.3%33.2%50.8%34.1%

Price Volatility Vs. Market

How volatile is Pacific Mercantile Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Pacific Mercantile Bancorp undervalued based on future cash flows and its price relative to the stock market?

15%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Pacific Mercantile Bancorp's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Pacific Mercantile Bancorp's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Pacific Mercantile Bancorp is overvalued based on earnings compared to the US Banks industry average.

Pacific Mercantile Bancorp is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Pacific Mercantile Bancorp is good value based on expected growth next year.


Price Based on Value of Assets

Pacific Mercantile Bancorp is overvalued based on assets compared to the US Banks industry average.


Next Steps

Future Growth

How is Pacific Mercantile Bancorp expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

18.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Pacific Mercantile Bancorp's revenue is expected to grow by 6.9% yearly, however this is not considered high growth (20% yearly).

Pacific Mercantile Bancorp's earnings are expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).

Pacific Mercantile Bancorp's revenue growth is positive but not above the United States of America market average.

Pacific Mercantile Bancorp's earnings growth is expected to exceed the United States of America market average.

Pacific Mercantile Bancorp's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Pacific Mercantile Bancorp is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Pacific Mercantile Bancorp performed over the past 5 years?

38.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Pacific Mercantile Bancorp has delivered over 20% year on year earnings growth in the past 5 years.

Pacific Mercantile Bancorp's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Pacific Mercantile Bancorp's 1-year earnings growth is negative, it can't be compared to the US Banks industry average.


Return on Equity

Pacific Mercantile Bancorp has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Pacific Mercantile Bancorp used its assets less efficiently than the US Banks industry average last year based on Return on Assets.


Return on Capital Employed

Unable to establish if Pacific Mercantile Bancorp improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.


Next Steps

Financial Health

How is Pacific Mercantile Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Information is not available.

Information is not available.


Financial Institutions Analysis

Pacific Mercantile Bancorp has an acceptable proportion of non-loan assets held.

Pacific Mercantile Bancorp has a sufficient allowance for bad loans.

Pacific Mercantile Bancorp's liabilities are made up of primarily low risk sources of funding.

Pacific Mercantile Bancorp's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).

Loans at Pacific Mercantile Bancorp are broadly funded by customer deposits.

Pacific Mercantile Bancorp has an acceptable level of bad loans (less than 2%).


Next Steps

Dividend

What is Pacific Mercantile Bancorp's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Pacific Mercantile Bancorp's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Pacific Mercantile Bancorp's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Pacific Mercantile Bancorp has not reported any payouts.

Unable to verify if Pacific Mercantile Bancorp's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Pacific Mercantile Bancorp has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Pacific Mercantile Bancorp's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

Tom Vertin (66yo)

3.6yrs

Tenure

US$818,738

Compensation

Thomas M. Vertin has been the Chief Executive Officer, President and Director at Pacific Mercantile Bancorp and its subsidiary Pacific Mercantile Bank (the “Bank”) since January 2016. He served as the Pres ...


CEO Compensation Analysis

Tom's remuneration is lower than average for companies of similar size in United States of America.

Tom's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

5.7yrs

Average Tenure

57.5yo

Average Age

The average tenure for the Pacific Mercantile Bancorp management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

4.1yrs

Average Tenure

68yo

Average Age

The tenure for the Pacific Mercantile Bancorp board of directors is about average.


Insider Trading

More shares have been bought than sold by Pacific Mercantile Bancorp individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

BuyUS$11,06906 Aug 19
Maxwell Sinclair
EntityIndividual
Role
Chief Compliance Officer
Executive VP & Chief Compliance Officer
Shares1,500
Max PriceUS$7.38
SellUS$52,38621 May 19
John Thomas
EntityIndividual
Shares6,641
Max PriceUS$7.89
SellUS$78,30914 Mar 19
John Thomas
EntityIndividual
Shares10,000
Max PriceUS$7.83
SellUS$1,09901 Mar 19
Tom Wagner
EntityIndividual
Shares133
Max PriceUS$8.26
SellUS$4,83625 Feb 19
Robert Anderson
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Banking Officer of Pacific Mercantile Bank
Shares557
Max PriceUS$8.68
SellUS$9,04025 Feb 19
Cindy Verity
EntityIndividual
Shares1,040
Max PriceUS$8.69
SellUS$22,27520 Feb 19
Cindy Verity
EntityIndividual
Shares2,550
Max PriceUS$8.74
SellUS$8,67420 Feb 19
Robert Anderson
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Banking Officer of Pacific Mercantile Bank
Shares993
Max PriceUS$8.74
SellUS$10,15920 Feb 19
Tom Wagner
EntityIndividual
Shares1,163
Max PriceUS$8.74
SellUS$137,39304 Feb 19
John Thomas
EntityIndividual
Shares17,500
Max PriceUS$7.85
BuyUS$151,34014 Dec 18
Curt Christianssen
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares20,000
Max PriceUS$7.57
SellUS$52,68008 Dec 18
John Thomas
EntityIndividual
Shares7,000
Max PriceUS$7.53
SellUS$20,12821 Nov 18
Tom Wagner
EntityIndividual
Shares2,500
Max PriceUS$8.05
SellUS$41,37530 Oct 18
John Thomas
EntityIndividual
Shares5,000
Max PriceUS$8.28
BuyUS$9,92830 Oct 18
Cindy Verity
EntityIndividual
Shares1,200
Max PriceUS$8.27
BuyUS$28,19129 Oct 18
Thomas Inserra
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares3,450
Max PriceUS$8.17
BuyUS$251,62226 Oct 18
Curt Christianssen
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares30,500
Max PriceUS$8.25
BuyUS$21,36026 Oct 18
Thomas Inserra
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares2,670
Max PriceUS$8.00
SellUS$49,091,11414 Sep 18
Carpenter & Company
EntityCompany
Shares5,950,438
Max PriceUS$8.25

Ownership Breakdown


Management Team

  • Tom Vertin (66yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$818.74k
  • Nancy Gray (68yo)

    Chief Accounting Officer

    • Tenure: 5.7yrs
    • Compensation: US$250.65k
  • Thomas Inserra (57yo)

    Executive VP

    • Tenure: 3.3yrs
    • Compensation: US$533.60k
  • Maxwell Sinclair (54yo)

    Executive VP & Chief Compliance Officer

    • Tenure: 8.6yrs
    • Compensation: US$331.15k
  • Curt Christianssen (58yo)

    Executive VP

    • Tenure: 5.7yrs
    • Compensation: US$435.79k
  • Robert Anderson (49yo)

    Executive VP & Chief Banking Officer of Pacific Mercantile Bank

    • Tenure: 0.0yrs
    • Compensation: US$317.63k

Board Members

  • Michael Hoopis (68yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$62.50k
  • David Munio (74yo)

    Director

    • Tenure: 3.7yrs
    • Compensation: US$62.50k
  • Tom Vertin (66yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$818.74k
  • Stephen Yost (73yo)

    Director

    • Tenure: 6.4yrs
    • Compensation: US$90.63k
  • Denis Kalscheur (68yo)

    Director

    • Tenure: 4.5yrs
    • Compensation: US$70.00k
  • Ed Carpenter (74yo)

    Chairman of the Board

    • Tenure: 7.3yrs
    • Compensation: US$82.50k
  • Jim Deutsch (64yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$5.00k
  • Michele Miyakawa (49yo)

    Director

    • Tenure: 0.3yrs

Company Information

Pacific Mercantile Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pacific Mercantile Bancorp
  • Ticker: PMBC
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$176.859m
  • Shares outstanding: 23.52m
  • Website: https://www.pmbank.com

Number of Employees


Location

  • Pacific Mercantile Bancorp
  • 949 South Coast Drive
  • Suite 300
  • Costa Mesa
  • California
  • 92626
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PMBCNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDDec 1999

Biography

Pacific Mercantile Bancorp operates as the holding company for Pacific Mercantile Bank that provides a range of commercial banking products and services to small and medium-size businesses, professional fi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:41
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.