(Source: Datamonitor)
Pacific Mercantile Bancorp, the parent holding company of Pacific Mercantile Bank, has received preliminary approval from the US Treasury Department to take part in the Treasury's capital purchase program under the troubled asset relief program.
As a result, the company is eligible to obtain a capital investment of up to $25.5 million from the US Treasury.
The purpose of the capital purchase program (CPP) is to encourage and provide support for US financial institutions to increase the flow of capital and financing to US businesses and consumers in an effort to stimulate the US economy.
Raymond Dellerba, president and CEO of Pacific Mercantile Bancorp, said: "Pacific Mercantile Bank is a well-capitalized financial institution under bank regulatory guidelines and does not have an immediate need for the additional capital that it is eligible to obtain under the CPP.
"As a result, now that we have received preliminary approval to participate in the CPP, our board of directors will update and complete its earlier review and analysis to determine whether the expense and changing requirements of this program are consistent with Pacific Mercantile Bancorp's longer term strategic objectives and whether participation in the program would be in the best interests of our shareholders."
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