PMC Commercial Trust (PCC) filed Quarterly Report for the period ended 2010-06-30.
Pmc Commercial Trust has a market cap of $95.67 million; its shares were traded at around $9.07 with a P/E ratio of 16.49 and P/S ratio of 5.88. The dividend yield of Pmc Commercial Trust stocks is 7.06%.PCC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:Our revolving credit facility (the Revolver), which is collateralized by PMC Commercials loans, matures on December 31, 2010. The amount available under the Revolver is currently $30 million and reduces to $25 million on October 1, 2010. Upon maturity the amount available will be $20 million. We are currently addressing the extension of our facility for an additional year with our lender.
During the first half of 2010, we were able to reduce the outstanding balance under our Revolver by $4.1 million while our capital outlay to fund loans was $22.9 million. We received $18.6 million in proceeds from selling the government guaranteed portion of loans, $5.7 million in principal from payments on our loans receivable that collateralize our Revolver and $2.3 million in proceeds from selling real estate owned.
Our net capital outlay for loans during the second half of 2010 (loans to be funded less proceeds from loans to be sold) is anticipated to be approximately $4.0 million. Our anticipated scheduled principal payments on our loan portfolio during the second half of 2010 are $3.0 million which would be available to repay a portion of the existing balance under the Revolver. Based on the above cash activity and other factors, we currently anticipate that the balance outstanding under our Revolver will be approximately $20.0 million, without any proceeds from loan principal prepayments or cash sales of real estate owned or alternatively, any unforeseen uses of funds.
For 2011, we will need funds to originate loans. To the extent the maximum guarantees under the SBA 7(a) Program are capped at 75%, we anticipate that we would need between $7.5 million and $10.0 million in 2011 to fund our SBA 7(a) anticipated gross fundings of between $30.0 million and $40.0 million. Our anticipated scheduled principal payments on our loan portfolio in 2011 are $6.0 million which would be available to repay a portion of any balance under the Revolver. Accordingly, without any loan principal prepayments, we would need additional borrowing capacity of between $1.5 million and $4.0 million. This analysis does not take into account potential additional working capital needs such as (1) timing differences between when we originate a loan and when we receive the proceeds from the sold loan, (2) continuation of a cash dividend that exceeds our cash generated from operations, (3) outlay of funds needed to protect our loans receivable during the foreclosure process or (4) unforeseen cash needs.
During the first half of 2010 we funded $22.7 million of SBA 7(a) Program loans. At June 30, 2010, December 31, 2009 and June 30, 2009, our outstanding commitments to fund loans were approximately $9.5 million, $20.7 million and $19.3 million, respectively. We expect that fundings during 2010 will be between $30 million and $40 million depending on our liquidity and the passage of legislation in Congress which would increase the 7(a) loan limit from $2 million to $5 million and extend the authorization to provide 90% guarantees on 7(a) loans and fee elimination for borrowers on 7(a) loans through December 31, 2010. These fundings will be predominantly through the SBA 7(a) Program.
At June 30, 2010 and December 31, 2009, we had loan loss reserves of $1,200,000 and $1,257,000, respectively, including general reserves of $850,000 and $650,000, respectively. Our provision for loan losses (excluding reductions of loan losses) as a percentage of our weighted average outstanding loans receivable was 0.13% and 0.14% during the six months ended June 30, 2010 and 2009, respectively. To the extent one or several of our loans experience significant operating difficulties and we are forced to liquidate the loans, future losses may be substantial.
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