Monday, Pacific Mercantile Bancorp (PMBC), reported a loss for the second quarter compared with a profit last year, reflecting a decrease in net interest income and higher provision for loan losses.
Second quarter net loss was $830 thousand or $0.08 per share, compared with profit of $1.5 million or $0.14 per share in the prior-year quarter.
Net interest income for the quarter fell 17.0% to $6.52 million, from $7.85 million prior year.
However, total non-interest income was $410 thousand, 30% higher than $315 thousand in the comparable quarter last year.
Provision for loan losses increased to $2.7 million from $324 thousand in the prior-year quarter. The increase was primarily the result of $2.3 million of net loan charge-offs recognized during the quarter.
Deposits decreased by $7 million or 1%, to $761 million at the end of the quarter. Gross loans totaled nearly $800 million compared with nearly $750 million same period last year.
Net interest margin for the quarter fell to 2.41% from 2.92% last year due to the decline in prevailing market rates of interest.
For the first-half, net income fell to $170 thousands or $0.02 per share from $3.1 million or $0.29 per share in the prior-year period.
Net interest income for the period was $13.4 million compared with $15.6 million last year. Non-interest income increased by $1.2 million, or 182%, to $1.9 million in the period.
PMBC's stock is currently trading down 0.73% at $6.77 on the Nasdaq.
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