Under orders from its regulators to boost a key capital ratio, Pacific Mercantile Bancorp in Costa Mesa, Calif., announced that it has already raised $11.2 million of fresh capital and has a deal in place to raise $27.3 million more.
The company said Friday that the $11.2 million it received from a group of institutional investors would boost its tangible regulatory capital ratio above 9%, which would satisfy the regulatory order issued by the California Department of Financial Institutions in August 2010.
It also said that the same investors, the Clinton Group and the Carpenter Funds, have agreed to buy a combination of common and preferred stock totaling $27.3 million. Once that sale is completed, representatives from both investment groups would join the company's boars and Carpenter Funds, an active investor in California community banks, would become Pacific Mercantile's largest shareholder with a 29% ownership stake.
The $986 million-asset Pacific Mercantile also announced Friday that it is searching for a new chief executive to run the day-to-day operations of its bank subsidiary so that its current CEO, Raymond Dellerba, could focus on larger strategic initiatives. Dellerba would remain CEO of the holding company and become vice chairman of the bank.