Pacific Mercantile Bancorp is the holding company for Pacific Mercantile Bank (the Bank). The Bank conducts a commercial banking business in Orange, Los Angeles, San Bernardino and San Diego counties in Southern California. It operates in two segments: the commercial banking division and the mortgage banking division. The commercial bank segment provides small and medium-size businesses, professional firms and individuals with a range of products and services, such as various types of deposit accounts, various types of commercial and consumer loans, cash management services, and online banking services. The mortgage banking segment originates and purchases residential mortgages that, for the most part, are resold within 30 days to long-term investors in the secondary residential mortgage market. In March 2013, an investor group, comprised of Carpenter Community BancFund LP and Carpenter Community BancFund-A LP, acquired a 13.325% stake in Pacific Mercantile Bancorp.