Heritage Commerce
Market Cap
US$740.0m
Last Updated
2019/11/16 23:36 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.
Snowflake
Fundamentals
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
1.4%
HTBK
-1.0%
US Banks
0.7%
US Market
1 Year Return
-13.7%
HTBK
8.9%
US Banks
12.9%
US Market
Return vs Industry: HTBK underperformed the US Banks industry which returned 8.9% over the past year.
Return vs Market: HTBK underperformed the US Market which returned 12.9% over the past year.
Shareholder returns
| HTBK | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.4% | -1.0% | 0.7% |
| 30 Day | 8.2% | 6.9% | 4.4% |
| 90 Day | 9.1% | 16.7% | 7.0% |
| 1 Year | -10.3%-13.7% | 12.2%8.9% | 15.4%12.9% |
| 3 Year | 10.6%0.6% | 39.2%29.5% | 49.1%39.5% |
| 5 Year | 77.8%51.0% | 72.7%53.6% | 62.7%44.7% |
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
The Heritage Commerce (NASDAQ:HTBK) Share Price Has Gained 45% And Shareholders Are Hoping For More2 weeks ago | Simply Wall St
You Have To Love Heritage Commerce Corp's (NASDAQ:HTBK) Dividend1 month ago | Simply Wall St
Here's Why I Think Heritage Commerce (NASDAQ:HTBK) Is An Interesting StockValuation
Is Heritage Commerce undervalued compared to its fair value and its price relative to the market?
23.4%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HTBK ($12.5) is trading below our estimate of fair value ($16.33)
Significantly Below Fair Value: HTBK is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: HTBK is good value based on its PE Ratio (11.2x) compared to the Banks industry average (12.7x).
PE vs Market: HTBK is good value based on its PE Ratio (11.2x) compared to the US market (18.2x).
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 (1.4x) 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 4 analysts?
17.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HTBK's forecast earnings growth (17.8% per year) is above the savings rate (2.7%).
Earnings vs Market: HTBK's earnings (17.8% per year) are forecast to grow faster than the US market (14.4% per year).
High Growth Earnings: HTBK's earnings are forecast to grow, but not significantly.
Revenue vs Market: HTBK's revenue (11.1% per year) is forecast to grow faster than the US market (7.3% per year).
High Growth Revenue: HTBK's revenue (11.1% 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?
27.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HTBK has high quality earnings.
Growing Profit Margin: HTBK's current net profit margins (34.8%) are higher than last year (19.8%).
Past Earnings Growth Analysis
Earnings Trend: HTBK's earnings have grown significantly by 27.4% per year over the past 5 years.
Accelerating Growth: HTBK's earnings growth over the past year (105.5%) exceeds its 5-year average (27.4% per year).
Earnings vs Industry: HTBK earnings growth over the past year (105.5%) exceeded the Banks industry 27.5%.
Return on Equity
High ROE: HTBK's Return on Equity (12.1%) 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 10.8x 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 (0.76%)
Next Steps
Dividend
What is Heritage Commerce's current dividend yield, its reliability and sustainability?
3.84%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: HTBK's dividend (3.84%) is higher than the bottom 25% of dividend payers in the US market (1.42%).
High Dividend: HTBK's dividend (3.84%) is in the top 25% of dividend payers in the US market (3.65%)
Stability and Growth of Payments
Stable Dividend: HTBK's dividend payments have been volatile in the past 10 years.
Growing Dividend: HTBK's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (42.1%), HTBK's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HTBK's dividends in 3 years are forecast to be well covered by earnings (48.1% payout ratio).
Next Steps
Management
What is the CEO of Heritage Commerce's salary, the management and board of directors tenure and is there insider trading?
5.6yrs
Average management tenure
CEO
Keith Wilton (61yo)
0.3yrs
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 ($USD2.62M).
Compensation vs Earnings: Keith's compensation has been consistent with company performance over the past year.
Management Age and Tenure
5.6yrs
Average Tenure
65.5yo
Average Age
Experienced Management: HTBK's management team is seasoned and experienced (5.6 years average tenure).
Board Age and Tenure
10.9yrs
Average Tenure
65.5yo
Average Age
Experienced Board: HTBK's board of directors are seasoned and experienced ( 10.9 years average tenure).
Insider Trading
Insider Buying: HTBK insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | US$12.44 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,000 |
| Max Price | US$11.96 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | US$12.01 |
| Entity | Individual |
| Role | Chairman of the Board Chairman of the Board |
| Shares | 9,020 |
| Max Price | US$11.97 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 5,000 |
| Max Price | US$12.10 |
| Entity | Individual |
| Role | Chief Executive Officer CEO, President & Director |
| Shares | 5,575 |
| Max Price | US$12.21 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,000 |
| Max Price | US$12.17 |
| Entity | Individual |
| Role | Chairman of the Board Chairman of the Board |
| Shares | 7,879 |
| Max Price | US$12.29 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 49,900 |
| Max Price | US$13.54 |
| Entity | Individual |
| Role | Member of the Board of Directors Director |
| Shares | 40,500 |
| Max Price | US$13.50 |
| Entity | Individual |
| Role | Chairman of the Board Chairman of the Board |
| Shares | 3,500 |
| Max Price | US$12.99 |
| Entity | Individual |
| Role | Chairman of the Board Chairman of the Board |
| Shares | 10,500 |
| Max Price | US$13.46 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 7,000 |
| Max Price | US$12.99 |
| Entity | Individual |
| Role | Chairman of the Board Chairman of the Board |
| Shares | 2,828 |
| Max Price | US$13.67 |
| Entity | Individual |
| Role | Chief Executive Officer CEO, President & Director |
| Shares | 5,649 |
| Max Price | US$14.36 |
| Entity | Individual |
| Role | Chairman of the Board Chairman of the Board |
| Shares | 3,513 |
| Max Price | US$14.27 |
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.5%.
Management Team
Larry McGovern (64yo)
Executive VP & CFO
- Tenure: 21.3yrs
- Compensation: US$563.07k
Bob Gionfriddo (73yo)
Executive VP & Director of Business Development
- Tenure: 4.3yrs
- Compensation: US$201.93k
May K. Wong
Executive VP & Controller
- Tenure: 2.6yrs
Walt Kaczmarek (67yo)
Director
- Tenure: 14.7yrs
- Compensation: US$1.11m
Keith Wilton (61yo)
CEO, President & Director
- Tenure: 0.3yrs
- Compensation: US$681.88k
Mike Hansen
Senior Vice President of Corporate Finance Division
- Tenure: 5.6yrs
Diana Olveira
Vice President and Marketing Director
- Tenure: 0yrs
Debbie Reuter
Executive VP
- Tenure: 9.8yrs
Jeff Perkins
Senior VP & Central Coast Regional Manager
- Tenure: 0yrs
Larry St. Regis
Executive VP & CTO
- Tenure: 0yrs
Board Members
Jason Dinapoli (50yo)
Independent Director
- Tenure: 1.3yrs
- Compensation: US$25.00k
Frank Bisceglia (73yo)
Independent Director
- Tenure: 25.8yrs
- Compensation: US$77.44k
Robert Moles (64yo)
Independent Director
- Tenure: 15.1yrs
- Compensation: US$70.78k
Ranson Webster (74yo)
Independent Director
- Tenure: 15.4yrs
- Compensation: US$77.56k
Jack Conner (79yo)
Chairman of the Board
- Tenure: 13.3yrs
- Compensation: US$100.79k
Walt Kaczmarek (67yo)
Director
- Tenure: 14.7yrs
- Compensation: US$1.11m
Laura Roden (60yo)
Independent Director
- Tenure: 8.3yrs
- Compensation: US$76.78k
Keith Wilton (61yo)
CEO, President & Director
- Tenure: 0.3yrs
- Compensation: US$681.88k
Steve Hallgrimson (76yo)
Independent Director
- Tenure: 8.4yrs
- Compensation: US$76.78k
Julianne Biagini-Komas (56yo)
Independent Director
- Tenure: 4.3yrs
- Compensation: US$76.54k
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$740.003m
- 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 ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/11/16 23:36 |
| End of Day Share Price | 2019/11/15 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.