Heritage Commerce
Market Cap
US$651.5m
Last Updated
2021/07/31 22:07 UTC
Data Sources
Company Financials +
Executive Summary
Heritage 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with solid track record and pays a dividend.
Similar Companies
Share Price & News
How has Heritage Commerce's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HTBK is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: HTBK's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-1.0%
HTBK
0.9%
US Banks
-0.5%
US Market
1 Year Return
59.9%
HTBK
59.1%
US Banks
35.9%
US Market
Return vs Industry: HTBK matched the US Banks industry which returned 59.1% over the past year.
Return vs Market: HTBK exceeded the US Market which returned 35.9% over the past year.
Shareholder returns
| HTBK | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.0% | 0.9% | -0.5% |
| 30 Day | -3.8% | -3.5% | 0.3% |
| 90 Day | -10.2% | -4.4% | 3.1% |
| 1 Year | 70.2%59.9% | 63.5%59.1% | 38.0%35.9% |
| 3 Year | -16.4%-27.6% | 17.3%7.2% | 62.9%52.7% |
| 5 Year | 19.8%-1.3% | 89.6%65.9% | 121.7%97.3% |
Long-Term Price Volatility Vs. Market
How volatile is Heritage Commerce's share price compared to the market and industry in the last 5 years?
Simply Wall St News
5 days ago | Simply Wall St
Heritage Commerce's (NASDAQ:HTBK) Dividend Will Be US$0.131 month ago | Simply Wall St
Did Heritage Commerce Corp (NASDAQ:HTBK) Insiders Sell Shares?2 months ago | Simply Wall St
Be Sure To Check Out Heritage Commerce Corp (NASDAQ:HTBK) Before It Goes Ex-DividendValuation
Is Heritage Commerce undervalued compared to its fair value and its price relative to the market?
30.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HTBK ($10.84) is trading below our estimate of fair value ($15.66)
Significantly Below Fair Value: HTBK is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HTBK is poor value based on its PE Ratio (15.1x) compared to the US Banks industry average (10.8x).
PE vs Market: HTBK is good value based on its PE Ratio (15.1x) compared to the US market (18x).
Price to Earnings Growth Ratio
PEG Ratio: HTBK is poor value based on its PEG Ratio (1.8x)
Price to Book Ratio
PB vs Industry: HTBK's PB Ratio (1.1x) is in line with the US Banks industry average.
Future Growth
How is Heritage Commerce forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
8.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HTBK's forecast earnings growth (8.5% per year) is above the savings rate (2%).
Earnings vs Market: HTBK's earnings (8.5% per year) are forecast to grow slower than the US market (14.9% per year).
High Growth Earnings: HTBK's earnings are forecast to grow, but not significantly.
Revenue vs Market: HTBK's revenue (5.6% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: HTBK's revenue (5.6% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HTBK's Return on Equity is forecast to be low in 3 years time (8.2%).
Past Performance
How has Heritage Commerce performed over the past 5 years?
13.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HTBK has high quality earnings.
Growing Profit Margin: HTBK's current net profit margins (28.5%) are higher than last year (21.5%).
Past Earnings Growth Analysis
Earnings Trend: HTBK's earnings have grown by 13% per year over the past 5 years.
Accelerating Growth: HTBK's earnings growth over the past year (45.5%) exceeds its 5-year average (13% per year).
Earnings vs Industry: HTBK earnings growth over the past year (45.5%) exceeded the Banks industry 34.3%.
Return on Equity
High ROE: HTBK's Return on Equity (7.3%) is considered low.
Financial Health
How is Heritage Commerce's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Financial Institutions Analysis
Asset Level: HTBK's Assets to Equity ratio (8.7x) is low.
Allowance for Bad Loans: HTBK has a sufficient allowance for bad loans (711%).
Low Risk Liabilities: 97% of HTBK's liabilities are made up of primarily low risk sources of funding.
Loan Level: HTBK has an appropriate level of Loans to Assets ratio (55%).
Low Risk Deposits: HTBK's Loans to Deposits ratio (64%) is appropriate.
Level of Bad Loans: HTBK has an appropriate level of bad loans (0.2%).
Dividend
What is Heritage Commerce current dividend yield, its reliability and sustainability?
4.80%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: HTBK's dividend (4.8%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: HTBK's dividend (4.8%) is in the top 25% of dividend payers in the US market (3.54%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, HTBK has been paying a dividend for less than 10 years.
Growing Dividend: HTBK's dividend payments have increased, but the company has only paid a dividend for 8 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (72.6%), HTBK's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HTBK's dividends in 3 years are forecast to be covered by earnings (62.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.9yrs
Average management tenure
CEO
Walt Kaczmarek (69 yo)
0.33
Tenure
US$80,787
Compensation
Mr. Walter T. Kaczmarek, also known as Walt, serves as the President and Chief Executive Officer of Heritage Bank of Commerce since March 12, 2021. He has been a Heritage Bank of Commerce Director since 20...
CEO Compensation Analysis
Compensation vs Market: Walt's total compensation ($USD80.79K) is below average for companies of similar size in the US market ($USD2.42M).
Compensation vs Earnings: Walt's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: HTBK's management team is seasoned and experienced (5.9 years average tenure).
Board Members
Experienced Board: HTBK's board of directors are considered experienced (8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HTBK insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Heritage Commerce Corp's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Heritage Commerce Corp
- Ticker: HTBK
- Exchange: NasdaqGS
- Founded: 1994
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$651.515m
- Shares outstanding: 60.10m
- Website: https://www.heritagecommercecorp.com
Number of Employees
Location
- Heritage Commerce Corp
- 224 Airport Parkway
- San Jose
- California
- 95110
- United States
Listings
Biography
Heritage 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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 22:07 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.