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 fair value.


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

-0.9%

PMBC

2.7%

US Banks

0.5%

US Market


1 Year Return

-11.0%

PMBC

2.9%

US Banks

6.8%

US Market

Return vs Industry: PMBC underperformed the US Banks industry which returned 2.7% over the past year.

Return vs Market: PMBC underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

PMBCIndustryMarket
7 Day-0.9%2.7%0.5%
30 Day-9.0%1.1%-0.8%
90 Day-11.7%2.7%-0.9%
1 Year-11.0%-11.0%5.8%2.9%9.2%6.8%
3 Year-3.3%-3.3%52.0%41.5%45.6%36.2%
5 Year10.8%10.8%69.2%50.7%63.2%45.4%

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?

14.63x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PMBC ($7.3) is trading above our estimate of fair value ($6.05)

Significantly Below Fair Value: PMBC is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PMBC is poor value based on its PE Ratio (14.6x) compared to the Banks industry average (12.6x).

PE vs Market: PMBC is good value based on its PE Ratio (14.6x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: PMBC is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: PMBC is good value based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).


Next Steps

Future Growth

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

16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PMBC's forecast earnings growth (16.8% per year) is above the savings rate (2.7%).

Earnings vs Market: PMBC's earnings (16.8% per year) are forecast to grow faster than the US market (14.6% per year).

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

Revenue vs Market: PMBC's revenue (7.2% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: PMBC's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PMBC's Return on Equity is forecast to be low in 3 years time (8.7%).


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

Earnings Trend: PMBC has become profitable over the past 5 years, growing earnings by 38% per year.

Accelerating Growth: PMBC's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: PMBC had negative earnings growth (-55.7%) over the past year, making it difficult to compare to the Banks industry average (29.6%).


Return on Equity

High ROE: PMBC's Return on Equity (8.1%) is considered low.


Return on Assets

ROA vs Industry: PMBC's Return on Assets is below or equal to the Banks industry average last year.


Return on Capital Employed

ROCE Improving: Insufficient data to calculate PMBC's Return on Capital Employed to determine if it has improved over the past 3 years.


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

Inventory Level: PMBC has a low level of unsold assets or inventory.

Debt Coverage by Assets: PMBC's debt is covered by short term assets (assets are 4.730090x debt).


Financial Institutions Analysis

Asset Level: PMBC's level of assets compared to its equity is low.

Allowance for Bad Loans: PMBC has a sufficient allowance for bad loans.

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

Loan Level: PMBC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: PMBC's loans are broadly funded by customer deposits.

Level of Bad Loans: PMBC has an appropriate level of bad loans (0.12%)


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

5.8yrs

Average management tenure


CEO

Brad Dinsmore (56yo)

0.08yrs

Tenure

0

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 ...


Management Age and Tenure

5.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: PMBC's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

68yo

Average Age

Experienced Board: PMBC's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyUS$223,43716 Sep 19
Bradford Dinsmore
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares28,000
Max PriceUS$7.98
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$10,15920 Feb 19
Tom Wagner
EntityIndividual
Shares1,163
Max PriceUS$8.74
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$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

Ownership Breakdown


Management Team

  • Nancy Gray (68yo)

    Chief Accounting Officer

    • Tenure: 5.8yrs
    • Compensation: US$250.65k
  • Thomas Inserra (57yo)

    Executive VP

    • Tenure: 3.4yrs
    • Compensation: US$533.60k
  • Maxwell Sinclair (54yo)

    Executive VP & Chief Compliance Officer

    • Tenure: 8.8yrs
    • Compensation: US$331.15k
  • Brad Dinsmore (56yo)

    CEO, President & Director

    • Tenure: 0.08yrs
  • Curt Christianssen (58yo)

    Executive VP

    • Tenure: 5.8yrs
    • Compensation: US$435.79k
  • Robert Anderson (49yo)

    Executive VP & Chief Banking Officer of Pacific Mercantile Bank

    • Tenure: 0yrs
    • Compensation: US$317.63k

Board Members

  • Michael Hoopis (68yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$62.50k
  • David Munio (74yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$62.50k
  • Stephen Yost (73yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$90.63k
  • Denis Kalscheur (68yo)

    Independent Director

    • Tenure: 4.7yrs
    • Compensation: US$70.00k
  • Ed Carpenter (74yo)

    Chairman of the Board

    • Tenure: 7.4yrs
    • Compensation: US$82.50k
  • Jim Deutsch (64yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: US$5.00k
  • Shannon Eusey (49yo)

    Director

    • Tenure: 0.4yrs
  • Brad Dinsmore (56yo)

    CEO, President & Director

    • Tenure: 0.08yrs
  • Michele Miyakawa (49yo)

    Director

    • Tenure: 0.4yrs

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$171.685m
  • 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 Analysis2019/10/20 23:38
End of Day Share Price2019/10/18 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.