Pacific Mercantile Bank Provides $8.0 Million Credit Facility to Upstrēm, Inc.

Pacific Mercantile Bank (“the Bank”), the wholly owned subsidiary of Pacific Mercantile Bancorp (NASDAQ: PMBC), today announced that it has provided an $8.0 million credit facility to Upstrēm, Inc. (“Upstrēm”), a technological leader in the online reselling of surplus retail footwear and apparel stocks. In addition to the financing, Upstrēm utilizes a full suite of Pacific Mercantile Bank’s depository products and treasury management services.   Upstrēm was referred to Pacific Mercantile Bank by Corbel Capital Partners, a structured debt and equity fund that recently made an investment in Upstrēm.

Headquartered in San Diego, Upstrēm is a technology-enabled liquidator of post-retail soft goods. Working with retailers around the world, Upstrēm has developed technology to maximize the speed and efficiency of processing excess goods from its liquidation partners. With a state-of-the-art fulfillment center in Louisville, KY, Upstrēm operates across multiple online marketplaces worldwide, as well as provides a strong and efficient secondary market to maximize recovery rates and market information for its retail partners.

“Our success in providing a full-service solution that enables retailers to maximize their return on challenged inventory has led to significant growth in our client base,” said Jake Risman, CEO of Upstrēm. “Having proven our capabilities in the footwear category, we are now expanding to apparel and significantly increasing our total addressable market. After Corbel Capital Partners completed its investment in our company, they introduced us to a bank they knew could support our continued expansion. Pacific Mercantile Bank developed a credit facility tailored to our needs and provided valuable insights through its Horizon Analytics® tool that has helped inform our plans for further increasing the value of our company.”

“We have worked with Pacific Mercantile Bank on a number of deals in the past and we thought they would be the ideal partner to assist a high growth company that has leveraged its talent and technology to become a dominant re-commerce player,” said Michael Jones, Principal of Corbel Capital Partners.

“We appreciate Corbel Capital introducing us to another exceptional company in their portfolio,” said Rob Parks, Senior Vice President at Pacific Mercantile Bank. “Working in tandem with Thomas Fagan from our Asset Based Lending team, we were able to overcome the disruptions presented by the COVID-19 pandemic and deliver a customized solution to support Upstrēm’s seasonal working capital needs. We are very excited about the growth opportunities available to Upstrēm and we look forward to expanding our relationship in the future as they continue to enter new markets and grow their client roster.”

About Pacific Mercantile Bank

Pacific Mercantile Bancorp (NASDAQ: PMBC) is the parent holding company of Pacific Mercantile Bank, which opened for business March 1, 1999. The Bank, which is an FDIC insured, California state-chartered bank and a member of the Federal Reserve System, provides a wide range of commercial banking services to businesses, business professionals and individual clients. The Bank is headquartered in Orange County and has seven locations in Southern California, located in Orange, Los Angeles, San Diego, and San Bernardino counties. The Bank offers tailored flexible solutions for its clients including an array of loan and deposit products, sophisticated treasury management services, and comprehensive online banking services accessible at www.pmbank.com.

About Horizon Analytics®

Horizon Analytics is Pacific Mercantile Bank’s proprietary financial tool that provides a level of insight and analysis uncommon for middle-market private businesses. Using a proprietary private company database and financial analysis techniques typically available only to large public companies, Horizon Analytics helps businesses understand how their financial performance compares to their competitors and develop a detailed multi-year financial forecast to assist with capital planning and business investment. Through the insight provided by Horizon Analytics, Pacific Mercantile Bank helps its clients navigate challenges, capitalize on opportunities, and look into the future, far beyond a company’s day-to-day activities. Learn more about Horizon Analytics and Pacific Mercantile Bank’s commitment to helping companies succeed at www.pmbank.com/HorizonAnalytics.

About Corbel Capital Partners

Corbel Capital Partners is an independent investment firm that makes non-control investments in the form of creatively tailored structured debt or equity securities in profitable, lower middle-market businesses. Corbel manages approximately $500 million of institutional capital and makes investments which can be used to facilitate growth, buyout a minority partner, consummate a strategic acquisition, provide existing owners with near-term liquidity, or creatively finance and support independent sponsor buyouts. Corbel also offers differentiated strategic and operational support traditionally not offered by non-control investors and allows owners of businesses to retain control equity positions and the potential for later monetization events. For more information please visit www.corbelcap.com.