Updated 04/06/2006

Protecting your privacy is important to Pacific Mercantile Bank and our employees. We are committed to protecting the security and confidentiality of your information. We want you to understand what information we collect and how we use it. This Privacy Policy Disclosure serves as our standard for the collection, use, and security of nonpublic personal information.

“Nonpublic personal information” is nonpublic information about you that we obtain in connection with providing a financial product or service to you. For example, nonpublic personal information includes information regarding your account balance, payment history, and overdraft history.

If you decide to close your account(s) or become an inactive customer, we will adhere to the privacy policies and practices as described in this notice.

Information We Collect

We may collect nonpublic personal information about you from the following sources:

• Information we receive from you on applications or other forms;
• Information about your transactions with us, our affiliates or others; and
• Information we receive from a consumer reporting agency.

Information Sharing with Nonaffiliated Third Parties

We do not disclose any nonpublic personal information about you to any other third parties, except as permitted by law.

Information Sharing with Nonaffiliated Third Parties as Permitted by Law

We may share all the information we collect, as described above, with third party service providers (i.e., third parties that are not members of our corporate family) in certain circumstances. For example, we may disclose nonpublic personal information about you to such third parties to assist us in servicing your loan or account with us; to government entities in response to subpoenas; and to credit bureaus.

We may also share your name and address information with companies that perform marketing services on our behalf, such as a mailing house. These service providers are contractually obligated to maintain the information provided to them confidential and for its use to be solely for the purpose for which they were contracted.

Our Security Procedures

We take steps to safeguard customer information. We restrict access to your personal and account information to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal standards to guard your nonpublic personal information.

Internet Privacy Policy

Please view our Internet Privacy Policy as displayed on our website, www.pmbank.com for details on our internet privacy program.

Ongoing Privacy Program

As part of our commitment to the safeguarding and security of customer information, Pacific Mercantile Bank provides its customers with an annual disclosure notice of our Privacy Policy, as long as they are customers of the Bank. The Policy may change, but the Bank will inform customers of any significant changes as required by applicable law. Customers may also view our Privacy Policy on our website, www.pmbank.com