NasdaqGS:PMBC

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Pacific Mercantile Bancorp

Market Cap

US$214.1m

Last Updated

2021/06/12 07:26 UTC

Data Sources

Company Financials +

Executive Summary

Pacific Mercantile Bancorp operates as a holding company for the Pacific Mercantile Bank that provides a range of commercial banking products and services to middle-market businesses, professional firms, and individuals. More Details


Snowflake Analysis

Solid track record with excellent balance sheet.


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

Stable Share Price: PMBC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PMBC's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.4%

PMBC

-3.2%

US Banks

0.7%

US Market


1 Year Return

150.0%

PMBC

63.4%

US Banks

44.2%

US Market

Return vs Industry: PMBC exceeded the US Banks industry which returned 63.4% over the past year.

Return vs Market: PMBC exceeded the US Market which returned 44.2% over the past year.


Shareholder returns

PMBCIndustryMarket
7 Day2.4%-3.2%0.7%
30 Day4.9%1.1%5.6%
90 Day10.4%3.2%5.0%
1 Year150.0%150.0%68.2%63.4%46.5%44.2%
3 Year-8.6%-8.6%30.3%19.1%60.2%50.3%
5 Year29.5%29.5%116.8%89.5%128.1%102.6%

Long-Term 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 compared to its fair value and its price relative to the market?

5.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PMBC ($9) is trading below our estimate of fair value ($9.49)

Significantly Below Fair Value: PMBC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PMBC is poor value based on its PE Ratio (15.1x) compared to the US Banks industry average (12x).

PE vs Market: PMBC is good value based on its PE Ratio (15.1x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: PMBC is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: PMBC is overvalued based on its PB Ratio (1.3x) compared to the US Banks industry average (1.1x).


Future Growth

How is Pacific Mercantile Bancorp forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PMBC's forecast earnings growth (5.2% per year) is above the savings rate (2%).

Earnings vs Market: PMBC's earnings (5.2% per year) are forecast to grow slower than the US market (15.5% per year).

High Growth Earnings: PMBC's earnings are forecast to grow, but not significantly.

Revenue vs Market: PMBC's revenue (3.6% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: PMBC's revenue (3.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PMBC's Return on Equity is forecast to be high in 3 years time


Past Performance

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

30.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PMBC has high quality earnings.

Growing Profit Margin: PMBC's current net profit margins (24.4%) are higher than last year (5.5%).


Past Earnings Growth Analysis

Earnings Trend: PMBC's earnings have grown significantly by 30.6% per year over the past 5 years.

Accelerating Growth: PMBC's earnings growth over the past year (499.7%) exceeds its 5-year average (30.6% per year).

Earnings vs Industry: PMBC earnings growth over the past year (499.7%) exceeded the Banks industry 20.5%.


Return on Equity

High ROE: PMBC's Return on Equity (8.7%) is considered low.


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


Financial Institutions Analysis

Asset Level: PMBC's Assets to Equity ratio (9.8x) is low.

Allowance for Bad Loans: PMBC has a low allowance for bad loans (83%).

Low Risk Liabilities: 98% of PMBC's liabilities are made up of primarily low risk sources of funding.

Loan Level: PMBC has an appropriate level of Loans to Assets ratio (78%).

Low Risk Deposits: PMBC's Loans to Deposits ratio (89%) is appropriate.

Level of Bad Loans: PMBC has an appropriate level of bad loans (1.7%).


Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PMBC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PMBC's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PMBC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PMBC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PMBC's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.5yrs

Average management tenure


CEO

Brad Dinsmore (57 yo)

1.75yrs

Tenure

US$583,101

Compensation

Mr. Bradford R. Dinsmore, also known as Brad, has been the President, Chief Executive Officer and Director of Pacific Mercantile Bancorp. and Pacific Mercantile Bank since September 3, 2019. Mr. Dinsmore s...


CEO Compensation Analysis

Compensation vs Market: Brad's total compensation ($USD583.10K) is below average for companies of similar size in the US market ($USD1.03M).

Compensation vs Earnings: Brad's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: PMBC's management team is seasoned and experienced (7.5 years average tenure).


Board Members

Experienced Board: PMBC's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PMBC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.5%.


Top Shareholders

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: 1998
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$214.104m
  • Shares outstanding: 23.79m
  • Website: https://www.pmbank.com

Number of Employees


Location

  • Pacific Mercantile Bancorp
  • 949 South Coast Drive
  • Third Floor
  • Costa Mesa
  • California
  • 92626
  • United States

Listings


Biography

Pacific Mercantile Bancorp operates as a holding company for the Pacific Mercantile Bank that provides a range of commercial banking products and services to middle-market businesses, professional firms, a...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/12 07:26
End of Day Share Price2021/06/11 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.