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Heritage Commerce

Nasdaq:HTBK
Snowflake Description

Flawless balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HTBK
Nasdaq
$524M
Market Cap
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Last updated 2019/06/23 23:39
Company description

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. The last earnings update was 45 days ago. More info.

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HTBK Share Price and Events
7 Day Returns
-1.8%
NasdaqGS:HTBK
0.1%
US Banks
2.2%
US Market
1 Year Returns
-31.5%
NasdaqGS:HTBK
-7.1%
US Banks
3.8%
US Market
HTBK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Heritage Commerce (HTBK) -1.8% -1.3% 3.9% -31.5% 18.1% 49.1%
US Banks 0.1% 1.5% 5.5% -7.1% 51.1% 40.9%
US Market 2.2% 4.2% 4.4% 3.8% 43% 40.9%
1 Year Return vs Industry and Market
  • HTBK underperformed the Banks industry which returned -7.1% over the past year.
  • HTBK underperformed the Market in United States of America which returned 3.8% over the past year.
Price Volatility
HTBK
Industry
5yr Volatility vs Market

HTBK Value

 Is Heritage Commerce undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Heritage Commerce to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Heritage Commerce.

NasdaqGS:HTBK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Median Return on Equity from the past 5 years.
= Stable Book Value * Return on Equity
= $9.74 * 9.6% 		$0.94
Book Value of Equity per Share Weighted future Book Value estimates from 3 analysts. $9.74
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:HTBK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Banks Unlevered Beta Simply Wall St/ S&P Global 0.59
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.592 (1 + (1- 21%) (9.18%)) 		0.755
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)		 0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%) 		7.5%

Discounted Cash Flow Calculation for NasdaqGS:HTBK using Excess Returns Model Model

The calculations below outline how an intrinsic value for Heritage Commerce is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

NasdaqGS:HTBK Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (9.6% – 7.5%) * $9.74) 		$0.21
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $0.21 / (7.5% - 2.73%) 		$4.36
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $9.74 + $4.36 		$14.1
NasdaqGS:HTBK Discount to Share Price
Calculation Result
Value per share (USD) From above. $14.10
Current discount Discount to share price of $12.08
= -1 x ($12.08 - $14.10) / $14.10 		14.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Heritage Commerce is available for.
Intrinsic value
14%
Share price is $12.08 vs Future cash flow value of $14.1
Current Discount Checks
For Heritage Commerce to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Heritage Commerce's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Heritage Commerce's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Heritage Commerce's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Heritage Commerce's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:HTBK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.91
NasdaqGS:HTBK Share Price ** NasdaqGS (2019-06-21) in USD $12.08
United States of America Banks Industry PE Ratio Median Figure of 600 Publicly-Listed Banks Companies 12.7x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Heritage Commerce.

NasdaqGS:HTBK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:HTBK Share Price ÷ EPS (both in USD)

= 12.08 ÷ 0.91

 13.34x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Heritage Commerce is overvalued based on earnings compared to the US Banks industry average.
  • Heritage Commerce is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Heritage Commerce's expected growth come at a high price?
Raw Data
NasdaqGS:HTBK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.34x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts		 33.4%per year
United States of America Banks Industry PEG Ratio Median Figure of 272 Publicly-Listed Banks Companies 1.36x
United States of America Market PEG Ratio Median Figure of 2,134 Publicly-Listed Companies 1.54x

*Line of best fit is calculated by linear regression .

NasdaqGS:HTBK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.34x ÷ 33.4%

 0.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Heritage Commerce is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Heritage Commerce's assets?
Raw Data
NasdaqGS:HTBK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $8.74
NasdaqGS:HTBK Share Price * NasdaqGS (2019-06-21) in USD $12.08
United States of America Banks Industry PB Ratio Median Figure of 603 Publicly-Listed Banks Companies 1.19x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.81x
NasdaqGS:HTBK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:HTBK Share Price ÷ Book Value per Share (both in USD)

= 12.08 ÷ 8.74

 1.38x

* Primary Listing of Heritage Commerce.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Heritage Commerce is overvalued based on assets compared to the US Banks industry average.
X
Value checks
We assess Heritage Commerce's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Banks industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Banks industry average (and greater than 0)? (1 check)
    5. Heritage Commerce has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

HTBK Future Performance

 How is Heritage Commerce expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
33.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Heritage Commerce expected to grow at an attractive rate?
  • Heritage Commerce's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Heritage Commerce's earnings growth is expected to exceed the United States of America market average.
  • Heritage Commerce's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:HTBK Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:HTBK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 33.4%
NasdaqGS:HTBK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 24%
United States of America Banks Industry Earnings Growth Rate Market Cap Weighted Average 3.9%
United States of America Banks Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:HTBK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:HTBK Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 190 68 3
2019-12-31 146 49 3
NasdaqGS:HTBK Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 130 49 39
2018-12-31 124 49 35
2018-09-30 118 46 23
2018-06-30 111 41 20
2018-03-31 113 41 26
2017-12-31 111 41 24
2017-09-30 108 37 30
2017-06-30 104 28 27
2017-03-31 102 30 26
2016-12-31 100 26 25
2016-09-30 99 31 21
2016-06-30 96 36 18

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Heritage Commerce's earnings are expected to grow significantly at over 20% yearly.
  • Heritage Commerce's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:HTBK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Heritage Commerce Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:HTBK Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.14 1.26 1.07 3.00
2019-12-31 1.05 1.12 1.02 3.00
NasdaqGS:HTBK Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.91
2018-12-31 0.85
2018-09-30 0.58
2018-06-30 0.50
2018-03-31 0.68
2017-12-31 0.63
2017-09-30 0.78
2017-06-30 0.74
2017-03-31 0.73
2016-12-31 0.72
2016-09-30 0.65
2016-06-30 0.58

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Heritage Commerce will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Show me more growth companies in the Banks industry
X
Future performance checks
We assess Heritage Commerce's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Heritage Commerce has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

HTBK Past Performance

  How has Heritage Commerce performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Heritage Commerce's growth in the last year to its industry (Banks).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Heritage Commerce has delivered over 20% year on year earnings growth in the past 5 years.
  • Heritage Commerce's 1-year earnings growth exceeds its 5-year average (48.2% vs 24.2%)
  • Heritage Commerce's earnings growth has exceeded the US Banks industry average in the past year (48.2% vs 40.7%).
Earnings and Revenue History
Heritage Commerce's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Heritage Commerce Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:HTBK Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 130.33 38.67 50.02
2018-12-31 123.80 35.33 48.50
2018-09-30 117.79 23.36 48.65
2018-06-30 111.37 19.57 46.74
2018-03-31 113.27 26.10 43.22
2017-12-31 111.04 23.83 43.28
2017-09-30 107.56 29.79 44.19
2017-06-30 104.01 27.16 43.85
2017-03-31 101.77 25.93 43.28
2016-12-31 100.49 24.59 41.24
2016-09-30 99.26 21.15 43.03
2016-06-30 96.20 18.09 41.61
2016-03-31 90.95 15.58 40.06
2015-12-31 85.27 13.79 38.39
2015-09-30 78.69 13.00 33.12
2015-06-30 72.52 12.91 32.75
2015-03-31 68.67 11.96 32.71
2014-12-31 65.19 11.08 32.19
2014-09-30 62.14 10.87 34.58
2014-06-30 61.35 10.69 34.06
2014-03-31 59.76 10.26 33.29
2013-12-31 58.22 9.52 30.08
2013-09-30 56.90 8.95 33.00
2013-06-30 55.37 8.35 32.43
2013-03-31 54.39 8.26 31.86
2012-12-31 54.46 7.18 31.64
2012-09-30 53.79 6.86 32.02
2012-06-30 52.32 8.34 31.78

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Heritage Commerce has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Heritage Commerce used its assets more efficiently than the US Banks industry average last year based on Return on Assets.
  • Unable to establish if Heritage Commerce improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
Show me more strong past performing companies in the Banks industry
X
Past performance checks
We assess Heritage Commerce's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Banks industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Heritage Commerce has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

HTBK Health

 How is Heritage Commerce's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Heritage Commerce's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Heritage Commerce Company Filings, last reported 2 months ago.

NasdaqGS:HTBK Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 378.52 48.04 234.98
2018-12-31 367.47 39.37 156.26
2018-09-30 353.57 39.32 381.03
2018-06-30 346.27 39.28 223.79
2018-03-31 270.99 39.23 301.99
2017-12-31 271.24 39.18 316.22
2017-09-30 275.45 39.14 346.12
2017-06-30 269.23 39.12 266.01
2017-03-31 263.90 0.00 287.85
2016-12-31 259.85 0.00 266.10
2016-09-30 261.32 0.00 344.39
2016-06-30 257.51 0.00 158.84
2016-03-31 251.66 0.00 143.14
2015-12-31 245.44 3.00 344.09
2015-09-30 247.98 1.00 392.94
2015-06-30 187.04 0.00 131.27
2015-03-31 186.78 0.00 151.78
2014-12-31 184.36 0.00 122.40
2014-09-30 182.92 0.00 154.08
2014-06-30 181.53 0.00 49.42
2014-03-31 176.82 0.00 85.00
2013-12-31 173.40 0.00 112.61
2013-09-30 170.49 0.00 41.90
2013-06-30 167.62 9.28 85.76
2013-03-31 170.84 9.28 76.87
2012-12-31 169.74 9.28 373.57
2012-09-30 169.00 9.28 31.51
2012-06-30 164.69 23.70 46.36
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Heritage Commerce has an acceptable proportion of non-loan assets held.
  • Heritage Commerce's liabilities are made up of primarily low risk sources of funding.
  • Loans at Heritage Commerce are broadly funded by customer deposits.
  • Heritage Commerce's level of assets compared to its equity is low (i.e. an appropriate level of borrowing to fund lending).
  • Heritage Commerce has a sufficient allowance for bad loans.
  • Heritage Commerce has an acceptable level of bad loans (less than 2%).
Show me more healthy companies in the Banks industry
X
Financial health checks
We assess Heritage Commerce's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
    7. Heritage Commerce has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

HTBK Dividends

 What is Heritage Commerce's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.97%
Current annual income from Heritage Commerce dividends. Estimated to be 4.14% next year.
If you bought $2,000 of Heritage Commerce shares you are expected to receive $79 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Heritage Commerce's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Heritage Commerce's dividend is above the markets top 25% of dividend payers in United States of America (3.73%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:HTBK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Banks Industry Average Dividend Yield Market Cap Weighted Average of 479 Stocks 2.9%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:HTBK Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.52 4.00
2019-12-31 0.48 4.00
NasdaqGS:HTBK Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-04-25 0.480 3.930
2019-01-24 0.480 3.687
2018-10-25 0.440 3.356
2018-07-26 0.440 2.892
2018-04-26 0.440 2.569
2018-01-25 0.440 2.702
2017-10-26 0.400 2.562
2017-07-27 0.400 2.881
2017-04-27 0.400 2.892
2017-01-26 0.400 2.863
2016-07-28 0.360 3.012
2016-04-28 0.360 3.408
2016-01-29 0.360 3.700
2015-10-26 0.320 2.977
2015-07-24 0.320 2.889
2015-04-23 0.320 3.426
2015-01-26 0.320 3.653
2014-10-23 0.200 2.317
2014-07-24 0.200 2.425
2014-04-24 0.160 1.981
2014-01-23 0.160 1.972
2013-10-24 0.120 1.510
2013-08-12 0.120 1.650
2011-03-07 0.000 0.000
2011-01-28 0.000 0.000
2010-11-10 0.000 0.000
2010-10-26 0.000 0.000
2010-08-06 0.000 0.000
2010-07-23 0.000 0.000
2010-05-11 0.000 0.000
2010-04-29 0.000 0.000
2010-03-17 0.000 0.000
2010-01-29 0.000 0.000
2009-10-28 0.000 0.000
2009-10-22 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Heritage Commerce has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Heritage Commerce only paid a dividend in the past 6 years.
Current Payout to shareholders
What portion of Heritage Commerce's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Heritage Commerce's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Heritage Commerce afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
    7. Heritage Commerce has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

HTBK Management

 What is the CEO of Heritage Commerce's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Walt Kaczmarek
COMPENSATION $1,112,450
AGE 66
TENURE AS CEO 14.3 years
CEO Bio

Mr. Walter T. Kaczmarek, also known as Walt, has been the Chief Executive Officer of Heritage Commerce Corp. and of its subsidiary Heritage Bank of commerce since March 18, 2005. Mr. Kaczmarek has been President at Heritage Commerce Corp since March 18, 2005. Mr. Kaczmarek has been a Director of Heritage Bank of Commerce and Heritage Commerce Corp. since March 18, 2005. Mr. Kaczmarek serves at Comerica for 15 years and also served as an Executive Vice President with responsibilities for middle market banking and private banking in the western region. He has more than 30 years of business experience, of which 25 years are in banking. He joined Comerica with the merger of San Jose based Plaza Bank of Commerce where he was instrumental in helping successfully merge the two organizations. Prior to Plaza Bank, he served for six years at The Martin Group, a real estate investment-development company and eight years at Union Bank. Mr. Kaczmarek serves on the Advisory Board of Santa Clara University's Leavey School of Business. He holds a Bachelor of Science Degree in Commerce in 1974, with a finance emphasis, from Santa Clara University. Mr. Kaczmarek earned his Masters of Business Administration from San Jose State University in 1976.

CEO Compensation
  • Walt's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Walt's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Heritage Commerce management team in years:

5.2
Average Tenure
64.5
Average Age
  • The average tenure for the Heritage Commerce management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Walt Kaczmarek

TITLE
President
COMPENSATION
$1M
AGE
66
TENURE
14.3 yrs

Keith Wilton

TITLE
Executive VP
COMPENSATION
$682K
AGE
60
TENURE
2.2 yrs

Larry McGovern

TITLE
Executive VP & CFO
COMPENSATION
$563K
AGE
63
TENURE
20.9 yrs

Mike Hansen

TITLE
Senior Vice President of Corporate Finance Division
TENURE
5.2 yrs

Larry St. Regis

TITLE
Executive VP & CTO

Debbie Reuter

TITLE
Executive VP
TENURE
9.4 yrs

Diana Olveira

TITLE
Vice President and Marketing Director

Bob Gionfriddo

TITLE
Executive VP & Director of Business Development
COMPENSATION
$202K
AGE
72
TENURE
3.8 yrs

May K. Wong

TITLE
Executive VP & Controller
TENURE
2.2 yrs

Jeff Perkins

TITLE
Senior VP & Central Coast Regional Manager
Board of Directors Tenure

Average tenure and age of the Heritage Commerce board of directors in years:

10.5
Average Tenure
64.5
Average Age
  • The average tenure for the Heritage Commerce board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Jack Conner

TITLE
Chairman of the Board
COMPENSATION
$101K
AGE
78
TENURE
12.9 yrs

Walt Kaczmarek

TITLE
President
COMPENSATION
$1M
AGE
66
TENURE
14.3 yrs

Keith Wilton

TITLE
Executive VP
COMPENSATION
$682K
AGE
60
TENURE
0.3 yrs

Ranson Webster

TITLE
Director
COMPENSATION
$78K
AGE
73
TENURE
15 yrs

Steve Hallgrimson

TITLE
Director
COMPENSATION
$77K
AGE
75
TENURE
8 yrs

Julianne Biagini-Komas

TITLE
Director
COMPENSATION
$77K
AGE
55
TENURE
3.8 yrs

Frank Bisceglia

TITLE
Director
COMPENSATION
$77K
AGE
72
TENURE
25.4 yrs

Robert Moles

TITLE
Director
COMPENSATION
$71K
AGE
63
TENURE
14.7 yrs

Laura Roden

TITLE
Director
COMPENSATION
$77K
AGE
59
TENURE
7.9 yrs

Jason Dinapoli

TITLE
Director
COMPENSATION
$25K
AGE
49
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Heritage Commerce insiders in the past 3 months.
Show me more companies with insider buying in the Banks industry
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Jun 19 Buy Jason Dinapoli Individual 07. Jun 19 07. Jun 19 5,000 $12.01 $60,039
03. Jun 19 Buy Jack Conner Individual 31. May 19 31. May 19 9,020 $11.97 $107,951
03. Jun 19 Buy Jason Dinapoli Individual 30. May 19 30. May 19 5,000 $12.10 $60,482
28. May 19 Buy Steven Hallgrimson Individual 24. May 19 24. May 19 1,000 $12.17 $12,164
28. May 19 Sell Keith Wilton Individual 24. May 19 24. May 19 -5,575 $12.21 $-68,097
23. May 19 Buy Jack Conner Individual 22. May 19 22. May 19 7,879 $12.29 $96,454
20. Feb 19 Sell Robert Moles Individual 11. Feb 19 12. Feb 19 -49,900 $13.54 $-669,435
13. Feb 19 Sell Walter Kaczmarek Individual 12. Feb 19 12. Feb 19 -40,500 $13.50 $-546,705
01. Feb 19 Buy Jack Conner Individual 31. Jan 19 31. Jan 19 3,500 $12.99 $45,466
31. Jan 19 Buy Jack Conner Individual 29. Jan 19 29. Jan 19 10,500 $13.46 $140,636
14. Dec 18 Buy Steven Hallgrimson Individual 12. Dec 18 12. Dec 18 7,000 $12.99 $90,937
06. Dec 18 Buy Jack Conner Individual 04. Dec 18 04. Dec 18 2,828 $13.67 $38,656
29. Nov 18 Sell Keith Wilton Individual 28. Nov 18 28. Nov 18 -5,649 $14.36 $-81,114
26. Nov 18 Buy Jack Conner Individual 21. Nov 18 21. Nov 18 3,513 $14.27 $50,005
14. Nov 18 Buy Jack Conner Individual 12. Nov 18 12. Nov 18 10,418 $14.43 $150,193
01. Nov 18 Buy Jason Dinapoli Individual 30. Oct 18 30. Oct 18 10,000 $14.69 $146,867
08. Aug 18 Buy Jason Dinapoli Individual 06. Aug 18 06. Aug 18 5,000 $14.82 $74,120
X
Management checks
We assess Heritage Commerce's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
    5. Heritage Commerce has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

HTBK News

Simply Wall St News

Don't Sell Heritage Commerce Corp (NASDAQ:HTBK) Before You Read This

Heritage Commerce has a price to earnings ratio of 13.3, based on the last twelve months. … See our latest analysis for Heritage Commerce How Do I Calculate A Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Heritage Commerce: P/E of 13.3 = $12.05 ÷ $0.91 (Based on the year to March 2019.) Is A High P/E Ratio Good?

Simply Wall St - –

Only 2 Days Left Until Heritage Commerce Corp (NASDAQ:HTBK) Trades Ex-Dividend

If you are interested in cashing in on Heritage Commerce Corp's (NASDAQ:HTBK) upcoming dividend of US$0.12 per share, you only have 2 days left to buy the shares before its ex-dividend date, 08 May 2019, in time for dividends payable on the 23 May 2019. … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:? … Will the company be able to keep paying dividend based on the future earnings growth

Simply Wall St - –

I Ran A Stock Scan For Earnings Growth And Heritage Commerce (NASDAQ:HTBK) Passed With Ease

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Heritage Commerce (NASDAQ:HTBK). … How Quickly Is Heritage Commerce Increasing Earnings Per Share. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth.

Simply Wall St - –

What You Should Know About Heritage Commerce Corp’s (NASDAQ:HTBK) Liquidity

Heritage Commerce Corp’s (NASDAQ:HTBK) profitability and risk are largely affected by the underlying economic growth for the region it operates in US given it is a small-cap stock with a market capitalisation of US$551m. … These reforms target banking regulations and intends to enhance financial institutions’ ability to absorb shocks resulting from economic stress which could expose banks like Heritage Commerce to vulnerabilities. … Strong management of leverage and liquidity could place the bank in a protected position at the face of macro headwinds.

Simply Wall St - –

Should Heritage Commerce Corp (NASDAQ:HTBK) Be Part Of Your Dividend Portfolio?

Over the past 10 years Heritage Commerce Corp (NASDAQ:HTBK) has been paying dividends to shareholders. … Let's dig deeper into whether Heritage Commerce should have a place in your portfolio. … See our latest analysis for Heritage Commerce

Simply Wall St - –

How Much Are Heritage Commerce Corp (NASDAQ:HTBK) Insiders Taking Off The Table?

So we'll take a look at whether insiders have been buying or selling shares in Heritage Commerce Corp (NASDAQ:HTBK). … That means that an insider was selling shares at around the current price of US$12.07. … In total, Heritage Commerce insiders sold more than they bought over the last year

Simply Wall St - –

Could Heritage Commerce Corp's (NASDAQ:HTBK) Investor Composition Influence The Stock Price?

Every investor in Heritage Commerce Corp (NASDAQ:HTBK) should be aware of the most powerful shareholder groups. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned.

Simply Wall St - –

Heritage Commerce Shareholders Have Enjoyed A 60% Share Price Gain

For example, long term Heritage Commerce Corp (NASDAQ:HTBK) shareholders have enjoyed a 60% share price rise over the last half decade, well in excess of the market return of around 40% (not including dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, Heritage Commerce achieved compound earnings per share (EPS) growth of 19% per year.

Simply Wall St - –

Is There Now An Opportunity In Heritage Commerce Corp (NASDAQ:HTBK)?

Heritage Commerce Corp (NASDAQ:HTBK), operating in the financial services industry based in United States,. … As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Heritage Commerce’s outlook and valuation to see if the opportunity still exists.

Simply Wall St - –

Despite Its High P/E Ratio, Is Heritage Commerce Corp (NASDAQ:HTBK) Still Undervalued?

To keep it practical, we'll show how Heritage Commerce Corp's (NASDAQ:HTBK) P/E ratio could help you assess the value on offer. … Heritage Commerce has a P/E ratio of 15.88, based on the last twelve months. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St - –

HTBK Company Info

Description

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.

Details
Name: Heritage Commerce Corp
HTBK
Exchange: NasdaqGS
Founded: 1997
$523,592,536
43,343,753
Website: http://www.heritagecommercecorp.com
Address: Heritage Commerce Corp
150 Almaden Boulevard,
San Jose,
California, 95113,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS HTBK Common Stock Nasdaq Global Select US USD 30. Jul 1998
Number of employees
Current staff
Staff numbers
309
Heritage Commerce employees.
Industry
Regional Banks
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/23 23:39
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/06/12
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.

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