Pacific Mercantile Bancorp's Shareholders Approve the Company's Proposals at Its January 26, 2012 Special Meeting of Shareholders

Pacific Mercantile Bancorp PMBC, the parent holding company of Pacific Mercantile Bank, announced today that its shareholders approved all of the Company's proposals at its Special Shareholders Meeting held on January 26, 2012. Those proposals included the approval of: The sale of $15.5 million of shares of the Company's Common Stock to the Carpenter Funds, at a purchase price that will be equal to the book value per share of the Company's Common Stock, currently $5.55 per share, as part of the second phase of the Company's previously announced pending equity financing. An increase in the authorized number of shares of the Company's Common Stock to 85 million shares needed to enable the Company to complete the second phase of the pending equity financing and to provide shares for the resumption of the Company's strategic growth initiatives; and An amendment to the Certificate of Determination of the Rights, Preferences and Privileges of the Company's Series A Preferred Stock permitting accumulated dividends on the 11,000 Series A Preferred Shares that remain outstanding to be paid in shares of Common Stock, which will result in the automatic conversion of those Series A Preferred Shares into Common Stock when those accumulated dividends are paid. The Company also reported today that, with the approval of that amendment to the Series A Certificate of Determination at the Special Shareholders Meeting, the Company's Board of Directors has declared a dividend on the outstanding shares of the Series A Preferred Stock, totaling $206,861 paid by the issuance, or the setting aside for issuance, of a total of 37,272 shares of Common Stock on January 30, 2012. As a result, all of the remaining Series A Preferred Stock automatically converted into a total of 143,790 shares of Common Stock on that date and no Series A Shares remain outstanding.