Pacific Mercantile Bank Provides New Credit Facility to ARGOS Material Distribution


COSTA MESA, Calif., Nov. 15, 2017 (GLOBE NEWSWIRE) -- Pacific Mercantile Bank (“the Bank”), the wholly owned subsidiary of Pacific Mercantile Bancorp (NASDAQ:PMBC), today announced that it has extended a $5 million senior credit facility to ARGOS Material Distribution, the second time in which PMB has increased the amount of credit available to ARGOS since initiating the relationship in 2014. In addition to the financing, ARGOS also utilizes Pacific Mercantile Bank’s depository products, treasury management services and corporate credit card.

Based in Chino, ARGOS Material Distribution distributes construction building materials to regional and local customers with a commitment to building long lasting business relationships and a reputation for focused service. ARGOS provides relevant expertise and an attentive business model that endeavors to exceed customer expectations. ARGOS’ executive team’s years of experience, coupled with the company’s commitment and integration of modern efficiency technologies, create a customer experience that fosters long-term business partnerships. In June 2017, Houston-based Action Gypsum Supply acquired a majority interest in ARGOS, with a joint announcement that “this strategic move reinforces both Action’s and ARGOS’ position as dominant independent players in each of their respective markets.”

“Pacific Mercantile Bank has been a valued partner over the past three years, as we have increased revenue tenfold,” said Al Jordan, President of ARGOS Material Distribution. “PMB has been extremely flexible in working with us to manage the dramatic growth we have experienced, and their Horizon Analytics® data has helped us understand the most efficient and profitable ways to operate and finance the business. We are very excited about the increased opportunities we have to grow our business as a result of our partnership with Action Gypsum Supply and we are pleased that PMB will continue to be a part of our team in the future.”

“ARGOS has achieved tremendous success over the past three years and is well positioned to take the company to the next level through its partnership with Action Gypsum Supply,” said Tom Vertin, President and Chief Executive Officer of Pacific Mercantile Bank. “We are pleased to increase the amount of financing to support ARGOS’ continued growth and look forward to helping the company reach new heights.”

About Pacific Mercantile Bank

Pacific Mercantile Bank opened for business March 1, 1999. The Bank, which is FDIC insured and a member of the Federal Reserve System, provides a wide range of commercial banking services to businesses, business owners and business professionals through its combination of traditional banking offices and comprehensive, sophisticated electronic banking services.

The Bank, headquartered in Orange County, operates a total of seven offices in Southern California, located in Orange, Los Angeles, San Diego, and San Bernardino counties. In addition, the Bank offers comprehensive online banking services accessible at www.pmbank.com. Pacific Mercantile Bancorp (NASDAQ:PMBC) is the parent holding company of Pacific Mercantile Bank.

Forward-Looking Information

This news release contains statements regarding our expectations, beliefs and views about our plans to continue to build our loan portfolio and supporting systems and processes. These statements, which constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, can be identified by the fact that they do not relate strictly to historical or current facts. Often, they include words such as "believe," "expect," "anticipate," "intend," "plan," "estimate," "project," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." These forward-looking statements are subject to numerous risks and uncertainties. Actual results may differ materially from the results discussed in these forward-looking statements because such statements are inherently subject to significant assumptions, risks and uncertainties, many of which are difficult to predict and are generally beyond our control. These risks and uncertainties include, but are not limited to, the following: the impact of interest rates and other external economic factors and competition among financial services providers. We undertake no obligation (and expressly disclaim any such obligation) to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. For additional information concerning factors that could cause actual conditions, events or results to materially differ from those described in the forward-looking statements, please refer to the factors set forth under the headings "Risk Factors" in our most recent Form 10-K and 10-Q reports and to our most recent Form 8-K reports, which are available online at www.sec.gov. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on our results of operations or financial condition.

Pacific Mercantile Bank Contact:
Robert Anderson
EVP & Chief Banking Officer
714-438-2500