Pacific Mercantile Bank Provides $4.0 Million Line of Credit to CRU Data Security Group

Rhea-AI Summary

Pacific Mercantile Bank announced a $4.0 million revolving line of credit to CRU Data Security Group, aimed at enhancing CDSG's secure data storage solutions following its recent acquisition of Digistor. The partnership with Merion Partners and support from Veber Partners facilitates flexible financing for CDSG's growth in the expanding data security market. CDSG specializes in secure data storage for various sectors including government and IT, emphasizing quality and customer service.

Positive

• Pacific Mercantile Bank provided a $4.0 million revolving line of credit to CRU Data Security Group, enabling growth.
• CDSG is positioned for accelerated growth after acquiring Digistor, expanding its data storage solutions.

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• None.

COSTA MESA, Calif., Feb. 17, 2021 (GLOBE NEWSWIRE) -- Pacific Mercantile Bank (“the Bank”), the wholly owned subsidiary of Pacific Mercantile Bancorp (NASDAQ: PMBC), today announced that it has provided a $4.0 million revolving line of credit to CRU Data Security Group (“CDSG”), an end-to-end data storage company. The revolving line of credit provided by Pacific Mercantile Bank is part of a debt infusion into CDSG made alongside Merion Partners, a small business investment company. Veber Partners, a regional investment bank and advisor to CDSG, assisted with the acquisition and corporate reorganization.

CDSG is a leading provider of high-quality data security, transport and storage devices for government and military agencies, small and medium-sized businesses, the entertainment industry, corporate IT departments, data centers and digital forensic investigators. CDSG ensures that sensitive, critical information is highly secure through physical data storage and operates with an unwavering commitment to superior quality, on-time delivery and comprehensive customer service.

“Following our acquisition of Digistor in late 2020, we have significantly expanded our suite of secure data storage solutions and positioned the company for accelerated growth in the rapidly evolving world of trusted and secure data storage,” said Randal Barber, President and CEO of CDSG. “Pacific Mercantile Bank understood how to work collaboratively with Veber Partners and Merion Partners to structure a credit facility that meets our unique needs and provides the flexible financing solution that will enable us to pursue our growth opportunities. We also appreciate the valuable insight that Pacific Mercantile Bank was able to provide through their Horizon Analytics® tool, which complements our internal valuation model and informs the development of our longer-term financial and operational strategies.”

“We appreciate Merion Partners introducing us to CDSG,” said Rob Parks, Senior Vice President and Business Development Officer at Pacific Mercantile Bank. “We are excited about the significant opportunities CDSG has to expand its customer base in the secure data storage market and we look forward to supporting them as they continue to grow in the future.”

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.

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:
Sean Foley
Chief Banking Officer
714-277-1495

FAQ

What is the purpose of the $4.0 million credit line provided by Pacific Mercantile Bank to CDSG?

The $4.0 million revolving line of credit aims to enhance CRU Data Security Group's secure data storage solutions and support its growth.

When did Pacific Mercantile Bank announce the credit line to CDSG?

The announcement was made on February 17, 2021.

Who assisted CDSG in acquiring the revolving credit line from Pacific Mercantile Bank?

Merion Partners and Veber Partners assisted CDSG in structuring the credit facility.

What expertise does CRU Data Security Group provide?

CDSG provides secure data storage solutions for government agencies, businesses, and data centers, focusing on high-quality service.

What is Horizon Analytics® and how does it support CDSG?

Horizon Analytics® is a financial tool from Pacific Mercantile Bank that helps businesses analyze their financial performance and plan for growth.