Pacific Mercantile Bancorp Announces Closing of Sale of $26.3 Million of Common Stock at $6.26 Per Share to the Carpenter Funds

Pacific Mercantile Bancorp Announces Closing of Sale of $26.3 Million of
Common Stock at $6.26 Per Share to the Carpenter Funds

COSTA MESA, Calif., April 23, 2012 (GLOBE NEWSWIRE) -- Pacific Mercantile
Bancorp (Nasdaq:PMBC) announced today that on April 20, 2012, it completed the
sale of $26.3 million of the Company's common stock at $6.26 per share to
Carpenter Community BancFund LP and Carpenter Community BancFund-A LP
(collectively, the "Carpenter Funds"). The price of $6.26 per share of common
stock was the Company's tangible book value per share of common stock as of
December 31, 2011, and represents approximately a 17% premium over the $5.36
closing bid price of the common stock on April 19, 2012, the day before the
closing.

A total of 4,201,278 shares of our common stock were sold to the Carpenter
Funds in this transaction.As a result, the Carpenter Funds have become our
largest shareholder, owning shares of preferred and common stock which
represent approximately 26% of the Company's outstanding voting
securities.The Carpenter Funds also purchased warrants from the Company for a
purchase price of $51,105 that, subject to certain conditions, will entitle
the Carpenter Funds to purchase up to 408,834 shares of the Company's common
stock ("Warrant Shares"), at an exercise price of $6.26 per Warrant Share.

Keefe, Bruyette & Woods acted as the sole placement agent and financial
advisor to the Company with respect to this common stock sale.

Raymond E. Dellerba, President and Chief Executive Officer of the Company and
its wholly owned subsidiary, Pacific Mercantile Bank, stated, "This $26.3
million common stock sale is the final installment of the $50.155 million in
capital that the Company has raised since 2009.This additional capital
strengthens the capital position of the Company and the Bank and our ability
to execute our strategic business plan to grow our franchise in commercial
lending, mortgage banking and electronic banking.We also look forward to
benefiting from the Carpenter Funds' experience and expertise in banking and
financial services."

Edward Carpenter, Chairman of the Carpenter Funds, stated, "We are delighted
to complete our investment in the Company.We look forward to further success
together as the Bank seeks to capitalize on the exciting opportunity ahead of
us."

About Pacific Mercantile Bancorp

Pacific Mercantile Bancorp is the parent holding company of Pacific Mercantile
Bank, which opened for business March 1, 1999.The Bank, which is an FDIC
insured, California state-chartered bank and a member of the Federal Reserve
System, provides a wide range of commercial banking services to businesses,
business professionals and individual clients through its combination of
traditional banking financial centers and comprehensive, sophisticated
electronic banking services.

The Bank operates a total of seven financial centers in Southern California,
four of which are located in Orange County, one of which is located in Los
Angeles County, one of which is located in San Diego County and the other of
which is located in the Inland Empire in San Bernardino County.The four
Orange County financial centers are located, respectively, in the cities of
Newport Beach, Costa Mesa (which is visible from the 405 and 73 Freeways), La
Habra and San Juan Capistrano (which is our South County financial center that
is visible from the Interstate 5 Freeway).Our financial center in Los Angeles
County is located in the city of Beverly Hills.Our San Diego financial center
is located in La Jolla and our Inland Empire financial center is located in
the city of Ontario (visible from the Interstate 10 Freeway).In addition to
the Bank's physical locations, it offers comprehensive banking services over
its Internet Bank, which is accessible 24/7 worldwide at www.pmbank.com.

The Pacific Mercantile Bancorp logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=7241

Forward-Looking Statements

This news release contains statements regarding our expectations, beliefs and
views about our future financial performance and our business, trends and
expectations regarding the markets in which we operate, and our future
plans.Those statements, which constitute "forward-looking statements" within
the meaning of Section27A of the Securities Act of 1933, as amended (the
"Securities Act"), and Section21E of the Securities Exchange Act of 1934, as
amended (the "Exchange Act"), can be identified by the fact that they do not
relate strictly to historical or current facts.Often, they include words such
as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project,"
or words of similar meaning, or future or conditional verbs such as "will,"
"would," "should," "could," or "may."Forward-looking statements are based on
current information available to us and our assumptions about future events
over which we do not have control.Moreover, our business and our markets are
subject to a number of risks and uncertainties which could cause our actual
financial performance in the future, and the future performance of our markets
(which can affect both our financial performance and the market prices of our
shares), to differ, possibly significantly, from our expectations as set forth
in the forward-looking statements contained in this news release.

In addition to the risk of incurring loan losses, which is an inherent feature
of the banking business, these risks and uncertainties include, but are not
limited to, the following:the risk that the economic recovery in the United
States, which is still relatively fragile, will be adversely affected by
international monetary or other economic conditions, which could cause us to
incur additional loan losses and adversely affect our results of operations
and could, thereby, cause us to incur losses in 2012 and in subsequent years;
uncertainties and risks with respect to the effects that our compliance with
the Federal Reserve Bank regulatory agreement (the "FRB Agreement") and the
DFI Order will have on our business and results of operations because, among
other things, that Agreement and Order impose restrictions on our ability to
grow our banking franchise and the risk of potential future supervisory
regulatory action against us or the Bank by the FRB or the DFI if we are
unable to meet any of the requirements of the FRB Agreement or the DFI Order;
the risk that sales of any additional equity securities we might make in the
future to raise additional capital could be dilutive of our existing
shareholders; the risks that continued weakness in the economy and the
possibility that the Federal Reserve Board will keep interest rates low in an
effort to stimulate economic recovery, will reduce our net interest margins
and, therefore, our net interest income; the prospect that government
regulation of banking and other financial services organizations will increase
generally and more particularly as a result of the implementation of the
Dodd-Frank Consumer Protection and Financial Reform Act, which could increase
our costs of doing business and restrict our ability to take advantage of
business and growth opportunities; and the risk that our re-entry in the
wholesale mortgage banking business may cause us to incur additional operating
expenses and may not prove to be profitable or may even cause us to incur
losses.

Additional information regarding these and other risks and uncertainties to
which our business and our stock price performance are subject is contained in
our Annual Report on Form 10-K for the year ended December31, 2011, which we
filed with the SEC on February 27, 2012.Due to those risks and uncertainties,
you are cautioned not to place undue reliance on the forward-looking
statements contained in this news release, which speak only as of its date, or
to make predictions about our future financial performance based solely on our
historical financial performance.

We disclaim any obligation to update or revise any of the forward-looking
statements as a result of new information, future events or otherwise, except
as may be required by law or NASDAQ rules.

CONTACT: Nancy Gray, SEVP & CFO, 714-438-2500
         Barbara Palermo, EVP & IR, 714-438-2500

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