Heritage Commerce
Market Cap
US$380.2m
Last Updated
2020/09/22 07:57 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
+ 1 more risk
Snowflake Analysis
Flawless balance sheet and undervalued.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
-4.2%
HTBK
-2.5%
US Banks
-1.5%
US Market
1 Year Return
-46.5%
HTBK
-26.7%
US Banks
12.9%
US Market
Return vs Industry: HTBK underperformed the US Banks industry which returned -26.7% 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 | -4.2% | -2.5% | -1.5% |
| 30 Day | -5.8% | 0.7% | -1.8% |
| 90 Day | -9.4% | -2.8% | 6.6% |
| 1 Year | -43.4%-46.5% | -24.1%-26.7% | 15.4%12.9% |
| 3 Year | -48.8%-54.6% | -15.2%-22.2% | 39.6%30.2% |
| 5 Year | -34.2%-45.3% | 23.6%8.4% | 93.4%71.7% |
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
9 hours ago | Simply Wall St
How Much Did Heritage Commerce's(NASDAQ:HTBK) Shareholders Earn From Share Price Movements Over The Last Three Years?3 weeks ago | Simply Wall St
Have Insiders Been Buying Heritage Commerce Corp (NASDAQ:HTBK) Shares?1 month ago | Simply Wall St
What Is The Ownership Structure Like For Heritage Commerce Corp (NASDAQ:HTBK)?Valuation
Is Heritage Commerce undervalued compared to its fair value and its price relative to the market?
23.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HTBK ($6.35) is trading below our estimate of fair value ($8.31)
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 (11.8x) compared to the US Banks industry average (9.7x).
PE vs Market: HTBK is good value based on its PE Ratio (11.8x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: HTBK is good value based on its PEG Ratio (0.9x)
Price to Book Ratio
PB vs Industry: HTBK is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (0.8x).
Next Steps
Future Growth
How is Heritage Commerce forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
13.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HTBK's forecast earnings growth (13.6% per year) is above the savings rate (2.2%).
Earnings vs Market: HTBK's earnings (13.6% per year) are forecast to grow slower than the US market (23.1% per year).
High Growth Earnings: HTBK's earnings are forecast to grow, but not significantly.
Revenue vs Market: HTBK's revenue (1.1% per year) is forecast to grow slower than the US market (9.8% per year).
High Growth Revenue: HTBK's revenue (1.1% 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 (6.8%).
Next Steps
Past Performance
How has Heritage Commerce performed over the past 5 years?
20.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HTBK has a large one-off loss of $13.0M impacting its June 30 2020 financial results.
Growing Profit Margin: HTBK's current net profit margins (21.5%) are lower than last year (35.2%).
Past Earnings Growth Analysis
Earnings Trend: HTBK's earnings have grown significantly by 20.2% per year over the past 5 years.
Accelerating Growth: HTBK's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HTBK had negative earnings growth (-40%) over the past year, making it difficult to compare to the Banks industry average (-3%).
Return on Equity
High ROE: HTBK's Return on Equity (5.1%) is considered low.
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
Financial Institutions Analysis
Asset Level: HTBK's Assets to Equity ratio (8x) is low.
Allowance for Bad Loans: HTBK has a sufficient allowance for bad loans (498%).
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 (57%).
Low Risk Deposits: HTBK's Loans to Deposits ratio (68%) is appropriate.
Level of Bad Loans: HTBK has an appropriate level of bad loans (0.3%).
Next Steps
Dividend
What is Heritage Commerce current dividend yield, its reliability and sustainability?
8.19%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HTBK's dividend (8.19%) is higher than the bottom 25% of dividend payers in the US market (1.66%).
High Dividend: HTBK's dividend (8.19%) is in the top 25% of dividend payers in the US market (4.7%)
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 high payout ratio (93%), HTBK's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HTBK's dividends in 3 years are forecast to be covered by earnings (78.8% 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 (62 yo)
1.08yrs
Tenure
US$855,606
Compensation
Mr. Keith A. Wilton has been the Chief Executive Officer and President at Heritage Commerce Corp. since August 8, 2019. Mr. Wilton has been the President of Heritage Bank of Commerce, a subsidiary of Herit ...
CEO Compensation Analysis
Compensation vs Market: Keith's total compensation ($USD855.61K) is below average for companies of similar size in the US market ($USD1.98M).
Compensation vs Earnings: Keith's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO, President & Director | 1.08yrs | US$855.61k | 0.23% $ 883.2k | |
| Director | 15.5yrs | US$1.63m | 0.22% $ 823.5k | |
| Executive VP & CFO | 22.17yrs | US$1.00m | 0.17% $ 650.2k | |
| Executive VP & President of Community Business Banking | 0.92yr | US$499.29k | 0.17% $ 632.3k | |
| Senior Vice President of Corporate Finance Division | 6.42yrs | no data | no data | |
| EVP & Chief Information Officer | no data | no data | no data | |
| Executive VP | 10.67yrs | no data | no data | |
| Vice President and Marketing Director | no data | no data | no data | |
| Executive VP & Controller | 3.42yrs | no data | no data | |
| Senior VP & Central Coast Regional Manager | no data | no data | no data | |
| Executive Vice President of HOA & Deposit Services | 5.08yrs | no data | no data | |
| Executive VP & President of Specialty Finance Group | no data | no data | no data |
5.8yrs
Average Tenure
63.5yo
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 | 1.08yrs | US$855.61k | 0.23% $ 883.2k | |
| Director | 15.5yrs | US$1.63m | 0.22% $ 823.5k | |
| Independent Director | 2.17yrs | US$78.04k | 0.56% $ 2.1m | |
| Independent Director | 26.67yrs | US$110.11k | 0.21% $ 780.2k | |
| Independent Director | 15.92yrs | US$124.03k | 0.099% $ 374.8k | |
| Independent Director | 0.92yr | US$12.24k | 0.28% $ 1.1m | |
| Independent Director | 0.92yr | US$11.16k | 0.16% $ 590.5k | |
| Independent Vice Chairman | no data | US$101.27k | 1.04% $ 3.9m | |
| Independent Chairman of the Board | 14.17yrs | US$130.42k | 0.24% $ 898.7k | |
| Independent Director | 0.92yr | US$11.16k | 0.12% $ 441.8k | |
| Independent Director | 9.17yrs | US$84.23k | 0.038% $ 145.5k | |
| Independent Director | 5.08yrs | US$84.18k | 0.049% $ 185.1k |
5.1yrs
Average Tenure
63.5yo
Average Age
Experienced Board: HTBK's board of directors are considered experienced (5.1 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HTBK insiders have only sold shares 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 37.7%.
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$380.212m
- Shares outstanding: 59.88m
- Website: https://www.heritagecommercecorp.com
Number of Employees
Location
- Heritage Commerce Corp
- 224 Airport Parkway
- San Jose
- California
- 95110
- 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 |
| XHC | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | 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 | 2020/09/22 07:57 |
| End of Day Share Price | 2020/09/21 00:00 |
| Earnings | 2020/06/30 |
| 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.