NasdaqGS:PMBC

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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 middle market businesses, professional firms, and individuals. More Details


Snowflake Analysis

Excellent balance sheet and good 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

Stable Share Price: PMBC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

PMBC

-0.9%

US Banks

-1.1%

US Market


1 Year Return

-48.3%

PMBC

-30.2%

US Banks

15.0%

US Market

Return vs Industry: PMBC underperformed the US Banks industry which returned -28.3% over the past year.

Return vs Market: PMBC underperformed the US Market which returned 15.6% over the past year.


Shareholder returns

PMBCIndustryMarket
7 Day-0.4%-0.9%-1.1%
30 Day0.5%5.1%2.9%
90 Day0.3%-1.0%5.7%
1 Year-48.3%-48.3%-27.6%-30.2%17.6%15.0%
3 Year-60.2%-60.2%-19.5%-26.2%38.9%29.7%
5 Year-44.0%-44.0%14.3%0.2%78.4%58.4%

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?

32.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PMBC ($3.72) is trading below our estimate of fair value ($5.51)

Significantly Below Fair Value: PMBC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PMBC is poor value based on its PE Ratio (53.2x) compared to the US Banks industry average (10.2x).

PE vs Market: PMBC is poor value based on its PE Ratio (53.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: PMBC is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: PMBC is good value based on its PB Ratio (0.6x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

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

55.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PMBC's forecast earnings growth (55.7% per year) is above the savings rate (2.2%).

Earnings vs Market: PMBC's earnings (55.7% per year) are forecast to grow faster than the US market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PMBC's revenue (6.4% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: PMBC's revenue (6.4% 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 (5.3%).


Next Steps

Past Performance

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

27.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PMBC has high quality earnings.

Growing Profit Margin: PMBC's current net profit margins (4.1%) are lower than last year (21.9%).


Past Earnings Growth Analysis

Earnings Trend: PMBC has become profitable over the past 5 years, growing earnings by 27.1% 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 (-85.2%) over the past year, making it difficult to compare to the Banks industry average (-4%).


Return on Equity

High ROE: PMBC's Return on Equity (1.1%) is considered low.


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


Financial Institutions Analysis

Asset Level: PMBC's Assets to Equity ratio (11.3x) is moderate.

Allowance for Bad Loans: PMBC has a low allowance for bad loans (71%).

Low Risk Liabilities: 93% 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 (80%).

Low Risk Deposits: PMBC's Loans to Deposits ratio (95%) is appropriate.

Level of Bad Loans: PMBC has an appropriate level of bad loans (1.9%).


Next Steps

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?

6.8yrs

Average management tenure


CEO

Brad Dinsmore (57 yo)

1.08yrs

Tenure

US$1,668,353

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 ($USD1.67M) is above average for companies of similar size in the US market ($USD585.94K).

Compensation vs Earnings: Insufficient data to compare Brad's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Bradford Dinsmore
CEO, President & Director1.08yrsUS$1.67m0.40%
$ 327.4k
Curt Christianssen
Executive VP6.83yrsUS$475.65k0.50%
$ 408.9k
Robert Anderson
Executive VPno dataUS$378.08k0.53%
$ 439.2k
Shamara Vizcarra
Executive VP and Head of Operations & Client Experienceno datano datano data
Nancy Gray
Chief Accounting Officer6.83yrsUS$250.65k0.027%
$ 22.7k
John Foley
EVP and Chief Banking Officerno datano data0.090%
$ 74.4k
Philipp Garcia
Executive VP & Chief Information Officer of Pacific Mercantile Bankno datano data0.11%
$ 87.1k

6.8yrs

Average Tenure

58yo

Average Age

Experienced Management: PMBC's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bradford Dinsmore
CEO, President & Director1.08yrsUS$1.67m0.40%
$ 327.4k
Michael Hoopis
Independent Director8.42yrsUS$62.50k0.064%
$ 52.7k
David Munio
Independent Director4.83yrsUS$62.50k0.054%
$ 44.5k
Anne McCallion
Director0.083yrno datano data
Stephen Yost
Independent Director7.58yrsUS$69.90k0.11%
$ 93.2k
Manish Dutta
Independent Director0.92yrUS$10.00k0.014%
$ 11.2k
Denis Kalscheur
Independent Chairman0.42yrUS$70.00k0.076%
$ 62.4k
James Deutsch
Independent Director1.92yrsUS$60.00kno data
Shannon Eusey
Independent Director1.42yrsUS$35.00k0.017%
$ 14.4k
Michele Miyakawa
Independent Director1.42yrsUS$35.00k0.017%
$ 14.4k

1.4yrs

Average Tenure

65yo

Average Age

Experienced Board: PMBC's board of directors are not considered experienced ( 1.4 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 only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


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$82.426m
  • Shares outstanding: 22.16m
  • 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 middle market businesses, professional firms, and ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 00:42
End of Day Share Price2020/10/27 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.