Patriot Financial Partners III, L.P. managed by Patriot Financial Partners, L.P. acquired 9.9% stake in Pacific Mercantile Bancorp (NasdaqGS:PMBC) from Carpenter Community BancFund, L.P. and Carpenter Community BancFund-A LP managed by Carpenter & Company for $17.9 million on September 14, 2018. The transaction included the sale of 3.6 million 1.5 million shares of a new series of non-voting preferred stock designated as Series A Non-Voting Preferred Stock that Pacific Mercantile issued to the Carpenter Funds in exchange for 1.5 million shares of Pacific Mercantile’s common stock, no par value per share, owned by the Carpenter Funds. The transaction is subject to the fulfillment or waiver of certain conditions, including the Exchange Agreement shall have been executed by the parties thereto, and the closing of the transactions contemplated by the Exchange Agreement shall have occurred immediately prior to the Closing, the entry into the Investor Rights Agreement and a Registration Rights Agreement, each by and between Patriot and Pacific Mercantile on terms and conditions reasonably satisfactory to the Patriot, the delivery by Sheppard, Mullin, Richter & Hampton LLP of its written opinion and the sale of all remaining shares of Common Stock owned by the Seller Carpenter to such other Additional Investors in the Other Sale Transactions simultaneous with the Closing, such that Patriot shall have no equity ownership interest in Pacific Mercantile following the consummation of the other sale transactions and the sale of the Shares to Patriot pursuant to this agreement. Joshua A. Dean of Sheppard Mullin Richter & Hampton LLP acted as legal advisor and Keefe, Bruyette & Woods acted as financial advisor to Carpenter & Company. James J. Barresi of Squire Patton Boggs (US) LLP acted as legal advisor to Patriot Financial. J. Jay Herron and Andor Terner of O’Melveny & Myers LLP acted as legal advisor to Pacific Mercantile Bancorp. Patriot Financial Partners III, L.P. managed by Patriot Financial Partners, L.P. completed the acquisition of 9.9% stake in Pacific Mercantile Bancorp (NasdaqGS:PMBC) from Carpenter Community BancFund, L.P. and Carpenter Community BancFund-A LP managed by Carpenter & Company on September 14, 2018.