Pacific Mercantile Bancorp Reports Conversion of Its Outstanding Series A 10% Cumulative Preferred Stock Into Common Stock

Pacific Mercantile Bancorp PMBC today reported that the holders of a total of 121,550 of the 126,550 outstanding shares the Company's Series A Convertible 10% Cumulative Preferred Stock, which the Company sold in a private placement completed in 2010, have converted their Series A Shares into a total of 1,588,658 shares of the Company's common stock at a conversion price of $7.65 per share of common stock. The terms of the Series A Shares had provided that these Series A Shares were to have been converted into common stock at the end of November 2011 and, then, only if the Company had first paid the dividends that had accrued on those Shares, in cash. In addition, the holders of those Series A Shares agreed to accept a total of 346,720 shares of common stock in lieu of the payment of a total of $1,716,274 of cash dividends that had accrued on the those Series A Shares to July 1, 2011, the effective date of the conversion. Raymond E. Dellerba, the Company's President and CEO stated, "We are very appreciative of the support we have received from the Series A investors who have converted their Series A Shares into common stock and accepted shares of common stock in lieu of cash dividends."