Heritage Commerce
Market Cap
US$690.9m
Last Updated
2020/02/16 23:42 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.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet, good value 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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.2%
HTBK
0.5%
US Banks
1.5%
US Market
1 Year Return
-16.2%
HTBK
12.1%
US Banks
20.1%
US Market
Return vs Industry: HTBK underperformed the US Banks industry which returned 12.1% over the past year.
Return vs Market: HTBK underperformed the US Market which returned 20.1% over the past year.
Shareholder returns
| HTBK | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | 0.5% | 1.5% |
| 30 Day | -7.3% | -1.3% | 1.4% |
| 90 Day | -7.2% | 1.2% | 8.7% |
| 1 Year | -12.7%-16.2% | 15.4%12.1% | 22.7%20.1% |
| 3 Year | -9.3%-17.9% | 25.2%16.2% | 50.1%40.5% |
| 5 Year | 59.3%35.1% | 75.9%55.9% | 73.1%54.1% |
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
2 weeks ago | Simply Wall St
Trade Alert: The Independent Director Of Heritage Commerce Corp (NASDAQ:HTBK), Steven Hallgrimson, Has Just Spent US$94k Buying Shares2 weeks ago | Simply Wall St
Be Sure To Check Out Heritage Commerce Corp (NASDAQ:HTBK) Before It Goes Ex-Dividend3 weeks ago | Simply Wall St
Should You Be Tempted To Sell Heritage Commerce Corp (NASDAQ:HTBK) Because Of Its P/E Ratio?Valuation
Is Heritage Commerce undervalued compared to its fair value and its price relative to the market?
42.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HTBK ($11.67) is trading below our estimate of fair value ($20.43)
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 (13.5x) compared to the Banks industry average (12.6x).
PE vs Market: HTBK is good value based on its PE Ratio (13.5x) compared to the US market (18.4x).
Price to Earnings Growth Ratio
PEG Ratio: HTBK is good value based on its PEG Ratio (0.6x)
Price to Book Ratio
PB vs Industry: HTBK is overvalued based on its PB Ratio (1.2x) compared to the US Banks industry average (1.2x).
Next Steps
Future Growth
How is Heritage Commerce forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
21.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HTBK's forecast earnings growth (21.7% per year) is above the savings rate (1.7%).
Earnings vs Market: HTBK's earnings (21.7% per year) are forecast to grow faster than the US market (14.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: HTBK's revenue (9.6% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: HTBK's revenue (9.6% 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 (10.6%).
Next Steps
Past Performance
How has Heritage Commerce performed over the past 5 years?
26.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HTBK has high quality earnings.
Growing Profit Margin: HTBK's current net profit margins (28.7%) are higher than last year (28.5%).
Past Earnings Growth Analysis
Earnings Trend: HTBK's earnings have grown significantly by 26.3% per year over the past 5 years.
Accelerating Growth: HTBK's earnings growth over the past year (14.5%) is below its 5-year average (26.3% per year).
Earnings vs Industry: HTBK earnings growth over the past year (14.5%) exceeded the Banks industry 12.1%.
Return on Equity
High ROE: HTBK's Return on Equity (7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
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
Inventory Level: HTBK has a low level of unsold assets or inventory.
Debt Coverage by Assets: HTBK's debt is covered by short term assets (assets are 4.5x debt).
Financial Institutions Analysis
Asset Level: HTBK's level of assets compared to its equity is low.
Allowance for Bad Loans: HTBK has a sufficient allowance for bad loans.
Low Risk Liabilities: HTBK's liabilities are made up of primarily low risk sources of funding.
Loan Level: HTBK has an acceptable proportion of non-loan assets held.
Low Risk Deposits: HTBK's loans are broadly funded by customer deposits.
Level of Bad Loans: HTBK has an appropriate level of bad loans (0.39%)
Next Steps
Dividend
What is Heritage Commerce's current dividend yield, its reliability and sustainability?
4.46%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: HTBK's dividend (4.46%) is higher than the bottom 25% of dividend payers in the US market (1.44%).
High Dividend: HTBK's dividend (4.46%) is in the top 25% of dividend payers in the US market (3.69%)
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 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (55.4%), 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 (50.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
Keith Wilton (61yo)
0.5yrs
Tenure
US$681,879
Compensation
Mr. Keith A. Wilton has been the Chief Executive Officer and President at Heritage Commerce Corp. since August 8, 2019. Mr. Wilton has been the President of Heritage Bank of Commerce, a subsidiary of Herit ...
CEO Compensation Analysis
Compensation vs Market: Keith's total compensation ($USD681.88K) is below average for companies of similar size in the US market ($USD2.47M).
Compensation vs Earnings: Keith's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 0.5yrs | US$681.88k | 0.18% $1.3m | |
| Director | 14.9yrs | US$1.11m | 0.21% $1.5m | |
| Executive VP & CFO | 21.6yrs | US$563.07k | 0.15% $1.1m | |
| Senior Vice President of Corporate Finance Division | 5.8yrs | no data | no data | |
| Executive VP & CTO | 0yrs | no data | no data | |
| EVP & Chief Information Officer | 0yrs | no data | no data | |
| Executive VP | 10.1yrs | no data | no data | |
| Vice President and Marketing Director | 0yrs | no data | no data | |
| Executive VP & Director of Business Development | 4.5yrs | US$201.93k | no data | |
| Executive VP & Controller | 2.8yrs | no data | no data |
5.8yrs
Average Tenure
65.5yo
Average Age
Experienced Management: HTBK's management team is seasoned and experienced (5.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 0.5yrs | US$681.88k | 0.18% $1.3m | |
| Director | 14.9yrs | US$1.11m | 0.21% $1.5m | |
| Independent Director | 1.6yrs | US$25.00k | 0.55% $3.8m | |
| Independent Director | 26.1yrs | US$77.44k | 0.20% $1.4m | |
| Independent Director | 15.3yrs | US$70.78k | 0.089% $612.0k | |
| Independent Director | 15.7yrs | US$77.56k | 1.04% $7.2m | |
| Chairman of the Board | 13.6yrs | US$100.79k | 0.21% $1.4m | |
| Independent Director | 8.6yrs | US$76.78k | 0.034% $231.4k | |
| Independent Director | 8.7yrs | US$76.78k | 0.22% $1.5m | |
| Independent Director | 4.5yrs | US$76.54k | no data |
11.1yrs
Average Tenure
65.5yo
Average Age
Experienced Board: HTBK's board of directors are seasoned and experienced ( 11.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HTBK insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.6%.
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: 1997
- Industry: Regional Banks
- Sector: Banks
- Market Cap: US$690.867m
- Shares outstanding: 59.20m
- Website: https://www.heritagecommercecorp.com
Number of Employees
Location
- Heritage Commerce Corp
- 150 Almaden Boulevard
- San Jose
- California
- 95113
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HTBK | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jul 1998 |
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 in California. It offers a range of deposit products for business banking and retail markets, including interest and non-interest bearing demand, savings accounts, certificate of deposit, money market accounts, and time deposits. The company also provides various loan products comprising 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; home equity lines of credit; consumer loans consisting of loans for financing automobiles, various consumer goods, and other personal purposes; and small business administration loans. In addition, it offers other banking services, including cashier's checks, bank-by-mail, ATMs, 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 provides its banking products and services through 14 full service branch offices in the southern and eastern regions of the general San Francisco Bay Area of California in the counties of Santa Clara, Alameda, Contra Costa, and San Benito. Heritage Commerce Corp was founded in 1997 and is based in San Jose, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:42 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.