HTBK

Heritage CommerceNasdaqGS:HTBK Stock Report

Market Cap

US$679.7m

7D

4.2%

1Y

69.5%

Updated

18 Sep, 2021

Data

Company Financials +
HTBK fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health6/6
Dividends4/6

HTBK Overview

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.

Heritage Commerce Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Heritage Commerce
Historical stock prices
Current Share PriceUS$11.29
52 Week HighUS$6.13
52 Week LowUS$12.65
Beta1.24
1 Month Change2.17%
3 Month Change2.82%
1 Year Change69.52%
3 Year Change-26.50%
5 Year Change-0.88%
Change since IPO28.47%

Recent News & Updates

Aug 20

Heritage Commerce: 4.7% Dividend Yield With Secure Dividends

HTBK’s markets in California are benefiting from good handling of the pandemic and overall economic strength. A large part of the portfolio is likely to reprice in the year ahead, which will pressurize the net interest margin. Heritage Commerce is offering quite an attractive dividend yield. Although the payout ratio is high, the dividend appears secure. The year-end target price suggests a modest upside from the current market price.

Jul 26
Heritage Commerce's (NASDAQ:HTBK) Dividend Will Be US$0.13

Heritage Commerce's (NASDAQ:HTBK) Dividend Will Be US$0.13

Heritage Commerce Corp ( NASDAQ:HTBK ) has announced that it will pay a dividend of US$0.13 per share on the 26th of...

Shareholder Returns

HTBKUS BanksUS Market
7D4.2%0.9%-0.6%
1Y69.5%63.3%33.8%

Return vs Industry: HTBK exceeded the US Banks industry which returned 63.3% over the past year.

Return vs Market: HTBK exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is HTBK's price volatile compared to industry and market?
HTBK volatility
HTBK Beta1.24
Industry Beta1.37
Market Beta1

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.

About the Company

FoundedEmployeesCEOWebsite
1994330Walt Kaczmarekhttps://www.heritagecommercecorp.com

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. Its deposit products for business banking and retail markets include interest and non-interest bearing demand, savings, and money market accounts, as well as certificates of deposit and time deposits. The company’s loan portfolio comprises 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; small business administration loans; home equity lines of credit; multifamily loans on residential properties; residential mortgage loans; and consumer loans consisting of loans for financing automobiles, various consumer goods, and other personal purposes.

Valuation

Is Heritage Commerce undervalued compared to its fair value and its price relative to the market?

24.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HTBK ($11.29) is trading below our estimate of fair value ($15.02)

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 (15.9x) compared to the US Banks industry average (10.8x).

PE vs Market: HTBK is good value based on its PE Ratio (15.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: HTBK is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: HTBK's PB Ratio (1.2x) 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 4 analysts?

7.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HTBK's forecast earnings growth (7.2% per year) is above the savings rate (2%).

Earnings vs Market: HTBK's earnings (7.2% 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 (9.8% 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 (8.1%).


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 36%.


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?

4.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HTBK's dividend (4.61%) is higher than the bottom 25% of dividend payers in the US market (1.33%).

High Dividend: HTBK's dividend (4.61%) is in the top 25% of dividend payers in the US market (3.6%)


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 (64.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

Walt Kaczmarek (69 yo)

0.50

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 ($USD80.79K) is below average for companies of similar size in the US market ($USD2.33M).

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 (6.1 years average tenure).


Board Members

Experienced Board: HTBK's board of directors are considered experienced (8.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 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$679.732m
  • Shares outstanding: 60.21m
  • Website: https://www.heritagecommercecorp.com

Number of Employees


Location

  • Heritage Commerce Corp
  • 224 Airport Parkway
  • San Jose
  • California
  • 95110
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/18 22:02
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.