PACIFIC MERCANTILE BANCORP (NASDAQ:PMBC) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02
Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers; Compensatory Arrangements of Certain Officers
On March 20, 2019, the Board of Directors of Pacific Mercantile Bancorp (the “Company”) designated Thomas M. Vertin as a participant (“Participant”) in the Company’s previously disclosed Change in Control Severance Plan (the “Plan”). A Participant will be eligible for benefits under the Plan if his or her employment is terminated either by the Company for any reason other than Cause (as such term is defined in the Plan) or the death or disability of the Participant, or by the Participant for Good Reason (as such term is defined in the Plan), during the period (a)commencing on the earlier of (i)the occurrence of a Change in Control and (ii)public announcement of an intended or anticipated Change in Control, provided that such Change in Control actually occurs; and (b)ending on the date one year following a Change in Control. The benefits under the Plan include: (i)a lump sum payment equal to a Participant’s monthly base salary multiplied by the Change in Control Benefits Period (as such term is defined in the Plan); (ii)a lump sum payment of a prorated annual bonus for the Plan year in which the termination occurs; (iii)a lump sum payment equal to the value of the Participant’s monthly welfare benefits multiplied by the lesser of the Change in Control Benefits Period and 12 months; and (iv)certain outplacement services. The benefits are to be paid on the first regular payroll period following the sixtieth (60th) day after the effective date of the Participant’s termination of employment. The Board of Directors fixed Mr. Vertin’s Change of Control Benefits Period at 24 months. In addition, on March 20, 2019, the Board of Directors revised the Change of Control Benefits Period for Curt A. Christianssen and Thomas J. Inserra from 12 months to 18 months.
About PACIFIC MERCANTILE BANCORP (NASDAQ:PMBC)
Pacific Mercantile Bancorp is the holding company for Pacific Mercantile Bank (the Bank). The Company’s business operations are conducted by the Bank. It operates through commercial banking segment. The Bank offers its customers different loan products, including commercial loans and credit lines, accounts receivable and inventory financing, Small Business Administration (SBA) guaranteed business loans, and owner-occupied commercial real estate loans. Its investments primarily include securities available for sale, which consist of residential mortgage backed securities issued by the United States agencies; residential collateralized mortgage obligations issued by non agencies; asset backed security and mutual funds. Its sources of funds include deposits, and borrowings and contractual obligations. Its deposits consist of noninterest bearing demand deposits, interest-bearing checking accounts, money market and savings deposits, and time deposits.
