8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported): May 9, 2007

Commission File Number 1-13610

PMC COMMERCIAL TRUST

(Exact name of registrant as specified in its charter)

TEXAS	75-6446078
(State or other jurisdiction	(I.R.S. Employer Identification No.)
of incorporation or organization)
17950 Preston Road, Suite 600, Dallas, TX 75252	(972) 349-3200
(Address of principal executive offices)	(Registrant’s telephone number)

Former name, former address and former fiscal year, if changed since last report: NONE

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

Press Release

Item 2.02. Results of Operations and Financial Condition

     On May 9, 2007, PMC Commercial Trust issued a press release describing, among other things, its results of operations for the three months ended March 31, 2007. A copy of the press release is attached as Exhibit 99.1 to this report. This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

Item 9.01. Financial Statements and Exhibits

(a)	Not applicable.
(b)	Not applicable.
(c)	Exhibits

     99.1 Press Release dated May 9, 2007.

SIGNATURE

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: May 10, 2007

PMC COMMERCIAL TRUST
By:	/s/ Barry N. Berlin
	Barry N. Berlin, Chief Financial Officer

EX-99.1

Exhibit 99.1

FOR IMMEDIATE PRESS RELEASE

FOR:	PMC Commercial Trust	CONTACT:	Investor Relations
	17950 Preston Road, Suite 600		972-349-3235
	Dallas, TX 75252

PMC Commercial Trust Announces First Quarter Results

PMC Commercial Trust
AMEX (Symbol PCC)

Dallas, TX May 9, 2007

PMC Commercial Trust (AMEX: PCC) announced first quarter results today. Income from continuing operations decreased to $2,969,000 ($0.27 per share) during the three months ended March 31, 2007 from $3,259,000 ($0.30 per share) during the three months ended March 31, 2006. The decrease of $290,000 was primarily a result of (1) a decrease in income from our retained interests in transferred assets of $352,000 primarily due to a decrease in our weighted average balance outstanding as a result of prepayments, (2) a decrease in other income of $168,000 due primarily to decreased prepayment fee income and (3) an increase in our combined general and administrative and salaries and related benefits expense of $196,000 resulting primarily from costs of evaluation of new investments and alternative sources of funds. Partially offsetting these decreases was an increase in interest income of $374,000 due to increases in variable interest rates and our weighted average loans outstanding.

For the three months ended March 31, 2007, net income was $2,821,000, or $0.26 per share, compared to $5,041,000, or $0.47 per share, for the three months ended March 31, 2006. Net income decreased by $2,220,000 primarily due to net gains on sales of real estate included in discontinued operations during the three months ended March 31, 2006 of $1,877,000 resulting primarily from the sale of six hotel properties.

We have deferred the recognition of gains on the sale of certain hotel properties and assets acquired in liquidation. Our deferred gains total approximately $2.0 million at March 31, 2007 of which approximately $425,000 was generated during the first quarter of 2007. These deferred gains will be recorded to income as principal is received on the related loans receivable or upon receipt of updated financial information from the purchaser that qualify the transaction for gain recognition.

Dr. Andrew S. Rosemore, Chairman of the Board, stated, “During the first quarter of 2006 we gained possession of 15 Amerihost hotel properties as a result of the Arlington bankruptcy. Through the effort of many of our employees, we ended the first quarter of 2007 with only two remaining unsold (one property was leased). These sales resulted in significant gains above book value and the underlying loans to facilitate the sales are performing well. Following quarter end, we sold one of these properties and a sale of the remaining property is currently pending.

‘Loan origination volume for the first quarter of 2007 was $15.4 million which includes $1.4 million as the result of financing the sale of an asset acquired in liquidation. While this loan origination volume is less than the volume of $17.6 million during the first quarter of 2006, that quarter included $13.0 million funded to facilitate Amerihost or other property sales.

‘As I stated previously, we are faced with many challenges related to the inverted or flat yield curve and an increasingly competitive environment. We are continuing our renewed emphasis on our SBA 7(a) government guaranteed loan program and evaluating opportunities which could include real estate ownership. Prepayments of our existing and securitized portfolio continue to create a challenge and totaled $22.4 million during the quarter.”

PMC COMMERCIAL TRUST – Page 2 Earnings Press Release May 9, 2007

The following tables contain comparative selected financial data as of March 31, 2007 and December 31, 2006 and for the three and months ended March 31, 2007 and 2006:

FINANCIAL POSITION INFORMATION
(In thousands)

	March 31,		December 31,		Increase
	2007		2006		(Decrease)%
Loans receivable, net	$	165,725	$	169,181		(2	%)
Retained interests in transferred assets	$	54,813	$	55,724		(2	%)
Real estate investments	$	4,372	$	4,414		(1	%)
Total assets	$	242,879	$	240,404		1	%
Debt	$	69,100	$	68,509		1	%
Total beneficiaries’ equity	$	156,975	$	157,291		—
Shares outstanding		10,754		10,754		—

- 2 -

PMC COMMERCIAL TRUST – Page 3 Earnings Press Release May 9, 2007

RESULTS OF OPERATIONS
(Dollars in thousands, except per share information)

	Three Months Ended March 31,
	2007			2006			Inc (Dec)%
Income:
Interest income	$	4,056		$	3,682			10	%
Income from retained interests in transferred assets		1,901			2,253			(16	%)
Hotel property revenues		169			301			(44	%)
Other income		741			909			(18	%)
Total income		6,867			7,145			(4	%)
Expenses:
Interest		1,352			1,434			(6	%)
Salaries and related benefits		1,167			1,060			10	%
General and administrative		739			650			14	%
Hotel property expenses		148			237			(38	%)
Impairments and provisions		328			399			(18	%)
Total expenses		3,734			3,780			(1	%)
Income before income tax provision, minority interest, and discontinued operations		3,133			3,365			(7	%)
Income tax provision		(142	)		(84	)		69	%
Minority interest (preferred stock dividend of subsidiary)		(22	)		(22	)		—
Income from continuing operations		2,969			3,259			(9	%)
Discontinued operations		(148	)		1,782			(108	%)
Net income	$	2,821		$	5,041			(44	%)
Basic weighted average shares outstanding		10,754			10,746
Basic and diluted earnings per share:
Income from continuing operations	$	0.27		$	0.30			(10	%)
Discontinued operations		(0.01	)		0.17			(106	%)
Net income	$	0.26		$	0.47			(45	%)

- 3 -

PMC COMMERCIAL TRUST – Page 4 Earnings Press Release May 9, 2007

REAL ESTATE INVESTMENT TRUST (“REIT”) TAXABLE INCOME

REIT taxable income is presented to assist investors in analyzing our performance and is a measure that is presented quarterly in our consolidated financial statements and is one of the factors utilized by our Board of Trust Managers in determining the level of dividends to be paid to our shareholders.

     The following reconciles net income to REIT taxable income:

	Three Months Ended
	March 31,
	2007			2006
	(In thousands)
Net income	$	2,821		$	5,041
Less: taxable REIT subsidiaries net income, net of tax		(244	)		(178	)
Add: book depreciation		46			71
Less: tax depreciation		(57	)		(334	)
Book/tax difference on property sales		419			350
Book/tax difference on retained interests in transferred assets, net		294			228
Impairment losses		233			43
Provision for loss on rent and related receivables		239			300
Book/tax difference on amortization and accretion		(74	)		(37	)
Asset valuation		(302	)		(889	)
Other book/tax differences, net		264			42
REIT taxable income	$	3,639		$	4,637
Common distributions declared	$	3,226		$	3,223
Weighted average common shares outstanding		10,754			10,746

CERTAIN MATTERS DISCUSSED IN THIS PRESS RELEASE ARE “FORWARD-LOOKING STATEMENTS” INTENDED TO QUALIFY FOR THE SAFE HARBORS FROM LIABILITY ESTABLISHED BY THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. THESE FORWARD-LOOKING STATEMENTS CAN GENERALLY BE IDENTIFIED AS SUCH BECAUSE THE CONTEXT OF THE STATEMENT WILL INCLUDE WORDS SUCH AS THE COMPANY “EXPECTS,” “ANTICIPATES” OR WORDS OF SIMILAR IMPORT. SIMILARLY, STATEMENTS THAT DESCRIBE THE COMPANY’S FUTURE PLANS, OBJECTIVES OR GOALS ARE ALSO FORWARD-LOOKING STATEMENTS. SUCH FORWARD-LOOKING STATEMENTS ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES, INCLUDING THE FINANCIAL PERFORMANCE OF THE COMPANY, REAL ESTATE CONDITIONS AND MARKET VALUATIONS OF ITS STOCK, WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE CURRENTLY ANTICIPATED. ALTHOUGH THE COMPANY BELIEVES THE EXPECTATIONS REFLECTED IN ANY FORWARD-LOOKING STATEMENTS ARE BASED ON REASONABLE ASSUMPTIONS, THE COMPANY CAN GIVE NO ASSURANCE THAT ITS EXPECTATIONS WILL BE ATTAINED. SHAREHOLDERS, POTENTIAL INVESTORS AND OTHER READERS ARE URGED TO CONSIDER THESE FACTORS CAREFULLY IN EVALUATING THE FORWARD-LOOKING STATEMENTS. THE FORWARD-LOOKING STATEMENTS MADE HEREIN ARE ONLY MADE AS OF THE DATE OF THIS PRESS RELEASE AND THE COMPANY UNDERTAKES NO OBLIGATION TO PUBLICLY UPDATE SUCH FORWARD-LOOKING STATEMENTS TO REFLECT SUBSEQUENT EVENTS OR CIRCUMSTANCES.

- 4 -