Pacific Mercantile Bancorp reports Q2 EPS 12c, two est. 13c
Reports Q2 CET1 capital ratio 12.5%. Reports Q2 book value per share $6.21. Tom Vertin, president & CEO of Pacific Mercantile Bancorp, said, "We continue to execute well on our strategies to improve our deposit mix and funding profile. During the second quarter, we had further growth in total deposits driven primarily by checking accounts. Our success in gathering lower-cost deposits has enabled us to reduce our reliance on non-core time deposits and more effectively manage our cost of funds. We also had a strong quarter of loan production and new client acquisition activity. We added 39 new operating company relationships through the first half of the year, which puts us ahead of last year's pace. Our strong new loan production is being offset by a significant increase in payoffs resulting from aggressive pricing and credit terms being offered by competitors. We have a growing loan pipeline that should result in continued strong loan production, although the headwind of elevated payoffs presents a challenge for generating a higher level of loan growth. We expect that our near-term earnings growth will be largely tied to our ability to offset payoffs in the loan portfolio and generate higher levels of net interest income."