NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has assigned a senior unsecured debt rating of BBB-, deposit rating of BBB-, subordinated debt rating of BB+, short-term debt rating of K3, and short-term deposit rating of K3 to Pacific Mercantile Bank, the subsidiary of Pacific Mercantile Bancorp (NASDAQ:PMBC). The outlook on all long-term ratings is stable.
Pacific Mercantile Bancorp, a California corporation headquartered in Costa Mesa, California, is the bank holding company (BHC) for Pacific Mercantile Bank, a full-service commercial bank founded in 1999. Pacific Mercantile has $1.1 billion in assets, $821.3 million in loans, and $872.0 million in deposits and operates through eight offices in Southern California, serving small- and middle-market businesses.
The ratings of Pacific Mercantile Bank are supported by the Bank’s strong capital ratios, well-positioned loan portfolio, minimal reliance on the FHLB, and experienced management team. The ratings are constrained by concerns surrounding the Bank’s relatively weak asset quality, volatile earnings stream, underdeveloped ERM systems, and limited market share.
The ratings are based on KBRA’s Global Bank and Bank Holding Company Rating Methodology dated January 28, 2015.
To view the report, please use the following link:
Pacific Mercantile Rating Report
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).