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Heritage Commerce Corp (NASDAQ: HTBK) is a bank holding company headquartered at 150 Almaden Blvd, San Jose, California. Established in 1997, it is the parent company of Heritage Bank of Commerce, which has been serving clients since 1994. The bank operates full-service branches across multiple locations including Danville, Fremont, Gilroy, Hollister, Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo, San Rafael, and Walnut Creek.
Through its subsidiary, Heritage Bank of Commerce, Heritage Commerce Corp provides comprehensive commercial banking services tailored primarily to small and medium-sized businesses, as well as their owners, managers, and employees. The company operates under two main segments: Banking and Factoring, with the majority of revenue derived from its Banking segment.
Heritage Bank of Commerce is recognized as an SBA Preferred Lender, indicating its strong relationship with the Small Business Administration and its commitment to supporting local businesses. Additionally, Bay View Funding, another subsidiary of Heritage Bank of Commerce, specializes in providing factoring financing—offering essential working capital to various industries across the United States.
As of the latest updates, Heritage Commerce Corp has showcased robust financial performance. In the second quarter of 2023, the company reported record earnings with a notable 28% increase in profits compared to the same period in 2022. This success was driven by the expansion of their loan portfolio, increased deposits, and higher net interest income. Despite a shift towards interest-bearing deposits impacting margins, the bank's responsiveness to client needs was evident.
The company maintains a strong credit quality with minimal nonperforming and classified assets. The allowance for credit losses remains substantial, representing 863% of nonperforming loans and 1.45% of total loans. The balance sheet is well-positioned with a diversified and stable deposit base, along with access to ample alternative funding sources, ensuring liquidity and stability amid industry challenges.
In 2023, despite economic headwinds, Heritage Commerce Corp continued to achieve significant milestones. The year-to-date net income increased by 12% compared to the previous year, fueled by steady growth in deposits, moderate loan demand, and higher net interest income. The company also received accolades such as being named on Forbes’ List of World’s Best Banks and ranking 25th on S&P Global Market Intelligence's top 50 list of best-performing community banks.
Looking forward, Heritage Commerce Corp remains focused on organic growth and disciplined financial management, avoiding reliance on borrowed funds and brokered deposits. As they celebrate the 30th anniversary of Heritage Bank of Commerce, the company continues to prioritize client service excellence, community support, and shareholder value.
For more information, please visit www.heritagecommercecorp.com. The contents of their website are not incorporated into, and do not form a part of, this release or any of their filings with the SEC.
Heritage Commerce Corp (Nasdaq: HTBK) announced that its subsidiary, Heritage Bank of Commerce, received the title of “Super Premier Performing Bank” by The Findley Reports, based on 2021 year-end financials. This prestigious designation is awarded to California banks that excel in performance criteria. Heritage Bank has been recognized for over 28 years for its superior service in the San Francisco Bay Area. This accolade highlights the bank's exceptional financial performance and dedication to client service.
Heritage Commerce Corp (NASDAQ: HTBK) announced the successful completion of a $40 million private placement of 5.0% Fixed-To-Floating Rate Subordinated Notes due 2032. The proceeds will primarily be utilized for general corporate purposes, particularly to repay the Company's outstanding 5.25% Fixed-To-Floating Rate Subordinated Notes due 2027. Redemption of these 2027 Notes is scheduled for June 1, 2022. Keefe, Bruyette & Woods and PNC FIG Advisory acted as co-placement agents for this offering.
Heritage Commerce Corp (Nasdaq: HTBK) has declared a quarterly cash dividend of $0.13 per share, payable on May 26, 2022, to shareholders of record by May 12, 2022. Established in 1997, the company operates Heritage Bank of Commerce, providing a range of financial services through its branches in California. As an SBA Preferred Lender, it aims to support various industries with financing solutions. This dividend demonstrates the company's commitment to returning income to its shareholders and reflects its financial health.
Heritage Commerce Corp (Nasdaq: HTBK) reported a net income of $12.9 million for Q1 2022, up from $11.2 million a year prior, with diluted earnings per share at $0.21. Net interest income rose 9% year-over-year to $38.2 million, aided by loan growth and credit quality, although the total loans decreased slightly from Q4 2021. Nonperforming assets fell 32% to $3.8 million. However, the allowance for credit losses dropped to 1.41% of total loans. Total assets increased by 9% to $5.427 billion, reflecting strong capital ratios and a solid foundation for growth.
Heritage Commerce Corp (Nasdaq: HTBK) announced the retirement of Executive Vice President Michael Benito, effective June 1, 2022. Dustin Warford will take on Benito's responsibilities as Executive Vice President, Community Business Banking Division Manager. Warford, a 17-year veteran at the bank, has been a significant contributor to its growth. The company also promoted Paul Perez to Real Estate Industries Division President and Doug Stewart to Market President for the Peninsula Region. These changes aim to continue the bank's success and community impact.
Bay View Funding, a subsidiary of Heritage Bank of Commerce, has appointed Norman Brame as Senior Vice President, Regional Sales Manager. His role will focus on expanding factoring business in Virginia, Tennessee, and the Carolinas, addressing rising demand in these regions. Brame, an 18-year financial industry veteran, brings a strong background in sales and marketing, as well as experience as a former business owner. His previous roles include Regional Vice President and National Sales Manager in factoring finance companies.
Bay View Funding, a subsidiary of Heritage Bank of Commerce (Nasdaq: HTBK), has appointed Aaron Zahedani as Executive Vice President, Credit & Portfolio Management, effective immediately. Zahedani, who previously held various positions at Bay View Funding, returns after over three years at Wells Fargo Capital Finance. His role will focus on overseeing global credit risk and portfolio management. Bay View Funding has been providing accounts receivable financing services since 1985, supporting businesses across various industries.
Heritage Commerce Corp (Nasdaq: HTBK) declared a quarterly cash dividend of $0.13 per share, payable on February 24, 2022, to shareholders of record by February 10, 2022. This decision reflects the company’s commitment to enhancing shareholder value, as noted by CEO Walter Kaczmarek. Heritage Commerce, established in 1997, operates Heritage Bank of Commerce, which is headquartered in San Jose, CA, offering full-service banking across multiple locations in California.
Heritage Commerce Corp (Nasdaq: HTBK) reported a net income of $14.0 million for Q4 2021, a 20% increase from $11.6 million in Q4 2020, and $47.7 million for the full year, up 35% year-over-year. Total assets grew to $5.5 billion, with an 18% increase in loans and a 22% rise in deposits. The efficiency ratio improved to 54.32%. Nonperforming assets dropped 52% year-over-year. The company maintained solid credit metrics, with an allowance for credit losses on loans at 1.40%. Despite challenges from COVID-19, the outlook remains positive for 2022.
Heritage Commerce Corp (Nasdaq: HTBK) has announced the appointment of Robertson (Clay) Jones as President and Chief Operating Officer of Heritage Bank of Commerce, effective immediately. Walter T. Kaczmarek remains the Chief Executive Officer of the Bank. Jones brings over 30 years of experience in community and commercial banking, having previously served as Executive Vice President at the Bank. He is recognized for his leadership during challenging times and has held significant roles at Presidio Bank and New Resource Bank. Heritage Bank has numerous branches across California.
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