Heritage Commerce Corp (HTBK) 10-Year Financial Performance & Capital Metrics

HTBK • • Banking & Credit

Financial ServicesRegional BanksCommunity & Regional Retail BankingWest Coast Community Banks

AboutHeritage Commerce Corp operates as the bank holding company for Heritage Bank of Commerce that provides various commercial and personal banking services to residents and the business/professional community in California. Its deposit products for business banking and retail markets include interest and non-interest bearing demand, savings, and money market accounts, as well as certificates of deposit and time deposits. The company's loan portfolio comprises commercial loans, such as operating secured and unsecured loans advanced for working capital, equipment purchases, and other business purposes; commercial real estate loans; commercial construction loans for rental properties, commercial buildings, and homes; small business administration loans; home equity lines of credit; multifamily loans on residential properties; residential mortgage loans; and consumer loans consisting of loans for financing automobiles, various consumer goods, and other personal purposes. In addition, it offers other banking services, including cashier's checks, bank by mail, night depositories, safe deposit boxes, direct deposit, automated payroll, electronic funds transfer, online bill pay, homeowner association, remote deposit capture, automated clearing house origination, electronic data interchange, and check imaging services, as well as other customary banking, factoring financing, and electronic banking services. The company operates through 17 full-service branch offices located in the general San Francisco Bay Area of California. Heritage Commerce Corp was founded in 1994 and is headquartered in San Jose, California.Show more

Net Interest Income $164M -10.7%
Total Revenue $251M +3.4%
Net Income $41M -37.1%
Return on Equity 5.95% -39.8%
Net Interest Margin 2.9% -17.8%
Efficiency Ratio 45.17% +8.8%
ROA 0.75% -40.0%
Equity / Assets 12.22% -5.7%
Book Value per Share 11.21 +2.1%
Tangible BV/Share 8.38 +3.5%
Debt/Equity 0.06 -2.1%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Company is almost debt free
✓Efficient operations: 45.2% efficiency ratio
✓Well capitalized: 12.2% equity/assets
✓Healthy dividend yield of 4.0%
✓Trading near 52-week high
✓Trading at only 1.1x book value

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y14.14%

5Y10.46%

3Y15.56%

TTM-

Profit (Net Income) CAGR

10Y11.68%

5Y0.03%

3Y-5.29%

TTM0.23%

EPS CAGR

10Y4.62%

5Y-4.71%

3Y-5.82%

TTM-1.41%

ROCE

10Y Avg12.4%

5Y Avg10.4%

3Y Avg11.18%

Latest6.91%

Peer Comparison

West Coast Community Banks

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
BCALSouthern California Bancorp	608.64M	18.83	85.59	45.45%	2.94%	11.23%	8.17%	0.17
CWBCCommunity West Bancshares	447.97M	23.38	51.96	51.89%	4.67%	6.95%	3.83%	0.56
GBCIGlacier Bancorp, Inc.	6.29B	48.39	28.80	11.64%	15.27%	6.57%	3.34%	1.18
GBFHGBank Financial Holdings Inc.	465.21M	32.36	23.28	2%	30.99%	11.8%	5.65%	0.22
BOHBank of Hawaii Corporation	2.86B	71.86	20.77	6.6%	14.57%	10.28%	5.9%	0.45
HFWAHeritage Financial Corporation	867.93M	25.56	20.61	4.64%	13.64%	6.33%	7.03%	0.47
HTBKHeritage Commerce Corp	786.28M	12.82	19.42	3.35%	16.12%	6.19%	4.75%	0.06
NRIMNorthrim BanCorp, Inc.	640.63M	29.00	17.47	23.77%	18.87%	19.99%		0.15

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Net Interest Income+	76.32M	91.22M	101.52M	122.02M	131.81M	141.89M	146.13M	179.88M	183.22M	163.65M
NII Growth %	0.34%	0.2%	0.11%	0.2%	0.08%	0.08%	0.03%	0.23%	0.02%	-0.11%
Net Interest Margin %	-	-	-	-	-	-	-	-	-	-
Interest Income	78.74M	94.43M	106.91M	129.84M	142.66M	150.47M	153.26M	188.83M	234.3M	242.7M
Interest Expense	2.42M	3.21M	5.39M	7.82M	10.85M	8.58M	7.13M	8.95M	51.07M	79.05M
Loan Loss Provision	32K	1.24M	99K	7.42M	846K	13.23M	-3.13M	766K	749K	2.14M
Non-Interest Income+	8.98M	11.63M	9.61M	9.57M	10.24M	9.92M	9.69M	10.11M	9M	8.75M
Non-Interest Income %	-	-	-	-	-	-	-	-	-	-
Total Revenue+	87.73M	106.06M	116.52M	139.42M	152.9M	160.39M	162.94M	198.94M	243.3M	251.45M
Revenue Growth %	0.31%	0.21%	0.1%	0.2%	0.1%	0.05%	0.02%	0.22%	0.22%	0.03%
Non-Interest Expense	58.67M	57.64M	60.74M	75.52M	84.9M	89.51M	93.08M	94.86M	101.05M	113.58M
Efficiency Ratio	-	-	-	-	-	-	-	-	-	-
Operating Income+	26.6M	43.97M	50.3M	48.66M	56.31M	49.07M	65.87M	94.37M	90.42M	56.67M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.27%	0.65%	0.14%	-0.03%	0.16%	-0.13%	0.34%	0.43%	-0.04%	-0.37%
Pretax Income+	26.6M	43.97M	50.3M	48.66M	56.31M	49.07M	65.87M	94.37M	90.42M	56.67M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	10.1M	16.59M	26.47M	13.32M	15.85M	13.77M	18.17M	27.81M	25.98M	16.15M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	16.5M	27.38M	23.83M	35.33M	40.46M	35.3M	47.7M	66.56M	64.44M	40.53M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.23%	0.66%	-0.13%	0.48%	0.15%	-0.13%	0.35%	0.4%	-0.03%	-0.37%
Net Income (Continuing)	16.5M	27.38M	23.83M	35.33M	40.46M	35.3M	47.7M	66.56M	64.44M	40.53M
EPS (Diluted)+	0.48	0.72	0.62	0.84	0.84	0.59	0.79	1.09	1.05	0.66
EPS Growth %	0.14%	0.5%	-0.14%	0.35%	0%	-0.3%	0.34%	0.38%	-0.04%	-0.37%
EPS (Basic)	0.48	0.72	0.63	0.85	0.87	0.59	0.79	1.10	1.06	0.66
Diluted Shares Outstanding	28.79M	34.22M	38.61M	42.18M	47.91M	60.17M	60.69M	61.09M	61.31M	61.53M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash & Short Term Investments+	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Cash & Due from Banks	344.09M	266.1M	316.22M	164.57M	457.37M	1.13B	1.31B	306.6M	408.13M	968.12M
Short Term Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Total Investments+	1.84B	2.12B	2.36B	2.7B	3.28B	3.11B	3.81B	4.46B	4.4B	4.29B
Investments Growth %	0.34%	0.15%	0.11%	0.14%	0.22%	-0.05%	0.22%	0.17%	-0.01%	-0.02%
Long-Term Investments	1.46B	1.81B	1.96B	2.24B	2.88B	2.87B	3.7B	3.97B	3.96B	4.04B
Accounts Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	0	0
Goodwill & Intangibles+	-	-	-	-	-	-	-	-	-	-
Goodwill	45.66M	45.66M	45.66M	83.75M	167.42M	167.63M	167.63M	167.63M	167.63M	167.63M
Intangible Assets	8.52M	6.95M	5.59M	12.01M	20.41M	16.66M	13.67M	11.03M	8.63M	6.44M
PP&E (Net)	7.77M	7.49M	7.35M	7.14M	8.25M	10.46M	9.64M	9.3M	9.86M	10.14M
Other Assets	72.72M	74.34M	78.72M	87.08M	105.87M	111.05M	110.09M	111.47M	202.03M	201.02M
Total Current Assets	770.51M	623.2M	741.35M	668.19M	929.34M	1.45B	1.49B	889.66M	850.76M	1.22B
Total Non-Current Assets	1.59B	1.95B	2.1B	2.43B	3.18B	3.18B	4.01B	4.27B	4.34B	4.42B
Total Assets+	2.36B	2.57B	2.84B	3.1B	4.11B	4.63B	5.5B	5.15B	5.19B	5.65B
Asset Growth %	0.46%	0.09%	0.11%	0.09%	0.33%	0.13%	0.19%	-0.06%	0.01%	0.09%
Return on Assets (ROA)	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%	0.01%
Accounts Payable	50.37M	48.89M	50.04M	52.2M	78.11M	102M	102.04M	96.17M	0	0
Total Debt+	3M	0	39.18M	39.37M	39.88M	39.74M	39.92M	39.35M	39.5M	39.65M
Net Debt	-341.09M	-266.1M	-277.04M	-125.2M	-417.49M	-1.09B	-1.27B	-267.25M	-368.63M	-928.47M
Long-Term Debt	0	0	39.18M	39.37M	39.55M	39.74M	39.92M	39.35M	39.5M	39.65M
Short-Term Debt	3M	490K	0	0	328K	0	0	0	0	24K
Other Liabilities	0	2.31B	0	0	0	0	0	0	103.23M	95.59M
Total Current Liabilities	2.12B	2.31B	2.53B	2.69B	3.49B	4.02B	4.86B	4.49B	4.38B	4.82B
Total Non-Current Liabilities	0	0	39.18M	39.37M	39.55M	39.74M	39.92M	39.35M	142.74M	135.25M
Total Liabilities	2.12B	2.31B	2.57B	2.73B	3.53B	4.06B	4.9B	4.52B	4.52B	4.96B
Total Equity+	245.44M	259.85M	271.36M	367.47M	576.71M	577.89M	598.03M	632.46M	672.9M	689.73M
Equity Growth %	0.33%	0.06%	0.04%	0.35%	0.57%	0%	0.03%	0.06%	0.06%	0.03%
Equity / Assets (Capital Ratio)	-	-	-	-	-	-	-	-	-	-
Return on Equity (ROE)	0.08%	0.11%	0.09%	0.11%	0.09%	0.06%	0.08%	0.11%	0.1%	0.06%
Book Value per Share	8.53	7.59	7.03	8.71	12.04	9.60	9.85	10.35	10.98	11.21
Tangible BV per Share	-	-	-	-	-	-	-	-	-	-
Common Stock	193.36M	215.24M	218.35M	300.84M	489.75M	493.71M	497.69M	502.92M	506.54M	510.07M
Additional Paid-in Capital	0	0	0	0	0	0	0	0	0	0
Retained Earnings	38.77M	52.53M	62.14M	79M	96.74M	94.9M	111.33M	146.39M	179.09M	187.76M
Accumulated OCI	-6.22M	-7.91M	-9.25M	-12.38M	-9.78M	-10.72M	-11M	-16.86M	-12.73M	-8.11M
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Preferred Stock	19.52M	0	0	0	0	0	0	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	28.49M	25.9M	41.36M	48.57M	50.34M	57.3M	56.85M	69.85M	73.01M	38.97M
Operating CF Growth %	0.47%	-0.09%	0.6%	0.17%	0.04%	0.14%	-0.01%	0.23%	0.05%	-0.47%
Net Income	16.5M	27.38M	23.83M	35.33M	40.46M	35.3M	47.7M	66.56M	64.44M	40.53M
Depreciation & Amortization	1.73M	2.33M	2.15M	2.7M	3.58M	4.7M	4.07M	3.76M	3.52M	3.53M
Deferred Taxes	0	0	0	0	0	0	0	0	0	0
Other Non-Cash Items	-5.28M	-2.32M	2.79M	5.94M	2.46M	13.59M	-2.48M	-2.54M	-5.83M	-2.78M
Working Capital Changes	14.31M	-2.91M	10.85M	2.79M	1.92M	1.46M	5.04M	-1.1M	8.48M	-5.15M
Cash from Investing+	-68.5M	-287.56M	-237.29M	77.66M	271.24M	146.38M	-696.83M	-669.49M	70.18M	110.62M
Purchase of Investments	-242.13M	-315.24M	-265.4M	-194.3M	-162M	-30.92M	-474.02M	-572.27M	0	-30.26M
Sale/Maturity of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Net Investment Activity	-	-	-	-	-	-	-	-	-	-
Acquisitions	165.79M	0	0	36.03M	117.99M	0	0	0	0	0
Other Investing	-98.11M	-138.51M	-79.91M	33.91M	34.97M	-88.17M	-462.58M	-206.71M	-50.54M	-142.13M
Cash from Financing+	261.7M	183.68M	246.05M	-277.88M	-28.78M	470.02M	815.13M	-399.98M	-41.67M	410.4M
Dividends Paid	-10.74M	-13.63M	-15.24M	-18.46M	-22.72M	-31.08M	-31.27M	-31.5M	-31.74M	-31.86M
Share Repurchases	58.28M	0	0	78M	185.6M	0	0	-2.05M	0	0
Stock Issued	0	938K	1.37M	2.67M	-185.6M	0	0	2.05M	0	690K
Net Stock Activity	-	-	-	-	-	-	-	-	-	-
Debt Issuance (Net)	1000K	-1000K	1000K	0	-1000K	-328K	0	-726K	0	0
Other Financing	269.44M	200.3M	222.22M	-259.42M	4.36M	501.43M	846.39M	-367.76M	-9.93M	441.57M
Net Change in Cash+	221.69M	-77.99M	50.12M	-151.65M	292.8M	673.7M	175.14M	-999.61M	101.53M	559.99M
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	122.4M	344.09M	266.1M	316.22M	164.57M	457.37M	1.13B	1.31B	306.6M	408.13M
Cash at End	344.09M	266.1M	316.22M	164.57M	457.37M	1.13B	1.31B	306.6M	408.13M	968.12M
Interest Paid	2.43M	3.21M	5.17M	7.53M	9.94M	8.56M	7.01M	8.65M	46.83M	77.24M
Income Taxes Paid	6.9M	16.53M	17.26M	12.84M	17.73M	10.64M	15.37M	25.18M	28.34M	13.22M
Free Cash Flow+	27.49M	25.42M	40.71M	48.38M	50.14M	54.13M	56.6M	69.07M	71.34M	37.35M
FCF Growth %	0.48%	-0.08%	0.6%	0.19%	0.04%	0.08%	0.05%	0.22%	0.03%	-0.48%

Banking Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	7.68%	10.84%	8.97%	11.06%	8.57%	6.11%	8.11%	10.82%	9.87%	5.95%
Return on Assets (ROA)	0.83%	1.11%	0.88%	1.19%	1.12%	0.81%	0.94%	1.25%	1.25%	0.75%
Net Interest Margin	3.23%	3.55%	3.57%	3.94%	3.21%	3.06%	2.66%	3.49%	3.53%	2.9%
Efficiency Ratio	66.88%	54.35%	52.13%	54.17%	55.52%	55.81%	57.12%	47.68%	41.54%	45.17%
Equity / Assets	10.39%	10.11%	9.54%	11.87%	14.03%	12.47%	10.87%	12.27%	12.96%	12.22%
Book Value / Share	8.53	7.59	7.03	8.71	12.04	9.6	9.85	10.35	10.98	11.21
NII Growth	33.66%	19.52%	11.3%	20.19%	8.02%	7.65%	2.98%	23.1%	1.86%	-10.68%
Dividend Payout	65.09%	49.77%	63.95%	52.26%	56.16%	88.05%	65.56%	47.32%	49.25%	78.61%

Revenue by Segment

	2020	2021	2022	2023	2024
Service charges and fees on deposit accounts	-	2.49M	4.64M	4.34M	3.56M
Service charges and fees on deposit accounts Growth	-	-	86.50%	-6.44%	-17.97%
Service Charges And Fees On Deposit Accounts	2.86M	-	-	-	-
Service Charges And Fees On Deposit Accounts Growth	-	-	-	-	-
Gain On Disposition Of Foreclosed Assets	791K	-	-	-	-
Gain On Disposition Of Foreclosed Assets Growth	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

Heritage Commerce Corp (HTBK) has a price-to-earnings (P/E) ratio of 19.4x. This is roughly in line with market averages.

Growth & Financials

Heritage Commerce Corp (HTBK) grew revenue by 3.4% over the past year. Growth has been modest.

Yes, Heritage Commerce Corp (HTBK) is profitable, generating $43.3M in net income for fiscal year 2024 (16.1% net margin).

Dividend & Returns

Yes, Heritage Commerce Corp (HTBK) pays a dividend with a yield of 4.04%. This makes it attractive for income-focused investors.

Heritage Commerce Corp (HTBK) has a return on equity (ROE) of 5.9%. This is below average, suggesting room for improvement.

Industry Metrics

Heritage Commerce Corp (HTBK) has a net interest margin (NIM) of 2.9%. NIM has been under pressure due to interest rate environment.

Heritage Commerce Corp (HTBK) has an efficiency ratio of 45.2%. This is excellent, indicating strong cost control.

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