Duyuru • Mar 12
Heritage Commerce Corp Declares Regular Quarterly Cash Dividend, Payable on April 8, 2026 Heritage Commerce Corp. announced that its Board of Directors had declared its regular quarterly cash dividend of $0.13 per share to holders of its common stock. The dividend will be payable on April 8, 2026, to shareholders of record at the close of the business day on March 25, 2026. Reported Earnings • Mar 10
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: US$0.78 (up from US$0.66 in FY 2024). Revenue: US$195.6m (up 15% from FY 2024). Net income: US$47.8m (up 18% from FY 2024). Profit margin: 24% (in line with FY 2024). Net interest margin (NIM): 3.56% (up from 3.25% in FY 2024). Cost-to-income ratio: 59.1% (down from 65.9% in FY 2024). Non-performing loans: 0.08% (down from 0.22% in FY 2024). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 2.3%. Revenue is forecast to grow 7.3% p.a. on average during the next 2 years, compared to a 8.7% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Major Estimate Revision • Feb 01
Consensus EPS estimates increase by 11% The consensus outlook for fiscal year 2026 has been updated. 2026 EPS estimate increased from US$0.95 to US$1.05. Revenue forecast unchanged at US$217.1m. Net income forecast to grow 36% next year vs 14% growth forecast for Banks industry in the US. Consensus price target of US$14.75 unchanged from last update. Share price was steady at US$12.73 over the past week. Declared Dividend • Jan 26
Fourth quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 5th February 2026 Payment date: 19th February 2026 Dividend yield will be 4.1%, which is higher than the industry average of 3.2%. Sustainability & Growth Dividend is covered by earnings (67% payout ratio) and is expected to be covered in 3 years' time (50% forecast payout ratio). The dividend has increased by an average of 5.0% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 30% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 23
Full year 2025 earnings: EPS and revenues exceed analyst expectations Full year 2025 results: EPS: US$0.78 (up from US$0.66 in FY 2024). Revenue: US$195.6m (up 15% from FY 2024). Net income: US$47.8m (up 18% from FY 2024). Profit margin: 24% (in line with FY 2024). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 2.3%. Revenue is forecast to grow 6.7% p.a. on average during the next 2 years, compared to a 9.1% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 23% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Duyuru • Jan 23
Heritage Commerce Corp Declares Regular Quarterly Cash Dividend, Payable on February 19, 2026 Heritage Commerce Corp. announced that its Board of Directors had declared its regular quarterly cash dividend of $0.13 per share to holders of its common stock. The dividend will be payable on February 19, 2026, to shareholders of record at the close of the business day on February 5, 2026. Duyuru • Jan 03
Heritage Commerce Corp Announces Retirement of Director Jason DiNapoli, Effective December 31, 2025 Heritage Commerce Corp. received notice from Director Jason DiNapoli that Mr. DiNapoli would retire as a director of the Company, effective as of December 31, 2025. Mr. DiNapoli’s retirement is not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies, practices or its recently announced merger. In connection with Mr. DiNapoli's retirement, the Board fixed the number of directors constituting the entire Board at 8, effective as of January 1, 2026. Price Target Changed • Dec 21
Price target increased by 7.7% to US$12.75 Up from US$11.83, the current price target is an average from 4 analysts. New target price is approximately in line with last closing price of US$12.42. The company is forecast to post earnings per share of US$0.77 for next year compared to US$0.66 last year. Duyuru • Dec 18
CVB Financial Corp. (NasdaqGS:CVBF) entered into a definitive agreement to acquire Heritage Commerce Corp (NasdaqGS:HTBK) for approximately $810 million. CVB Financial Corp. (NasdaqGS:CVBF) entered into a definitive agreement to acquire Heritage Commerce Corp (NasdaqGS:HTBK) for approximately $810 million on December 17, 2025. Under the terms of the agreement, HTBK shareholders will receive 0.6500 shares of CVBF common stock for each HTBK share. Heritage Commerce Corp will merge with and into the CVB Financial Corp., with the CVB continuing as the surviving corporation. Upon closing, CVBF shareholders will own approximately 77% and HTBK shareholders will own approximately 23% of the combined company. David Brager will retain his role as Chief Executive Officer of Citizens and Clay Jones, President and Chief Executive Officer of Heritage, will join Citizens as President of the combined organization. Two of Heritage’s current directors will join the Citizens’ Board of Directors.
The transaction is subject to customary regulatory approvals, Heritage and Citizens shareholder approvals, and other closing conditions. The merger has been unanimously approved by the respective Boards of Directors of both companies. The expected completion of the transaction is in the second quarter of 2026. The transaction is expected to be immediately accretive to Citizens’ earnings per share.
JPMorgan Chase & Co. acted as financial advisor for CVB Financial Corp. Craig Miller, Veronica Lah, David Herbst, Jeff Mannisto, Chris Wanger, Brandon Reilly, Michel Narganes, Andrew Satenberg, and Hope Adams of Manatt, Phelps & Phillips, LLP acted as legal advisor for CVB Financial Corp. Piper Sandler & Co. acted as financial advisor and Wachtell, Lipton, Rosen & Katz LLP acted as legal advisor for Heritage Commerce Corp. Price Target Changed • Dec 18
Price target increased by 9.0% to US$12.17 Up from US$11.17, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of US$12.21. Stock is up 27% over the past year. The company is forecast to post earnings per share of US$0.77 for next year compared to US$0.66 last year. Declared Dividend • Oct 27
Third quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 6th November 2025 Payment date: 20th November 2025 Dividend yield will be 4.9%, which is higher than the industry average of 3.2%. Sustainability & Growth Dividend is covered by earnings (74% payout ratio) and is expected to be covered in 3 years' time (51% forecast payout ratio). The dividend has increased by an average of 5.0% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 38% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 24
Third quarter 2025 earnings: EPS and revenues exceed analyst expectations Third quarter 2025 results: EPS: US$0.24 (up from US$0.17 in 3Q 2024). Revenue: US$49.6m (up 18% from 3Q 2024). Net income: US$14.7m (up 40% from 3Q 2024). Profit margin: 30% (up from 25% in 3Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 2.3%. Earnings per share (EPS) also surpassed analyst estimates by 14%. Revenue is forecast to grow 5.8% p.a. on average during the next 3 years, compared to a 8.0% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has only fallen by 9% per year, which means it has not declined as severely as earnings. Duyuru • Oct 24
Heritage Commerce Corp Declares Regular Quarterly Cash Dividend on Common Stock, Payable on November 20, 2025 Heritage Commerce Corp. announced that its Board of Directors had declared its regular quarterly cash dividend of $0.13 per share to holders of its common stock. The dividend will be payable on November 20, 2025, to shareholders of record at the close of the business day on November 6, 2025. Board Change • Oct 01
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 6 experienced directors. 2 highly experienced directors. Director Chris Abate was the last director to join the board, commencing their role in 2025. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Duyuru • Sep 25
Heritage Commerce Corp and Heritage Bank of Commerce Announce Retirement of Deborah K. Reuter as Executive Vice President and Chief Risk Officer, Effective as of January 5, 2026 On September 18, 2025, Heritage Commerce Corp. (the Company), the holding company for Heritage Bank of Commerce (the Bank and together with the Company, Heritage) received notice from Deborah K. Reuter of her decision to retire as Executive Vice President and Chief Risk Officer of the Company and the Bank, effective as of January 5, 2026. Ms. Reuter’s retirement follows a distinguished career with Heritage since its inception in 1994. In connection with her retirement, Ms. Reuter is entitled to the retirement and other benefits described in the Executive Compensation section of the Company’s Definitive Proxy Statement dated April 7, 2025. The Company has initiated the process to identify a new Chief Risk Officer and Ms. Reuter will assist with the transition of her duties and responsibilities to her successor to ensure an orderly and effective transition. Upon her retirement, Ms. Reuter’s Employment Agreement with the Company will terminate and she will continue as a non-executive employee advisor until March 31, 2026, unless otherwise extended by mutual agreement. Ms. Reuter will work on an as-needed basis and will be compensated at an hourly rate based on her current base salary. Ms. Reuter will remain eligible to receive incentive compensation for fiscal year 2025 only. Duyuru • Aug 19
Heritage Commerce Corp and Heritage Bank of Commerce Announce Appointment of Christopher J. Abate to the Board of Directors Heritage Commerce Corp. announced the appointment of Christopher J. Abate to the Board of Directors (the “Board”) of the Company and the Bank, expanding the Board to nine directors from eight. Mr. Abate will also serve as a member of the Board’s Audit Committee and its Personnel and Compensation Committee. Mr. Abate is a seasoned finance and accounting executive with over 20 years of experience in the financial services industry, bringing a wealth of extensive experience and knowledge in real estate and finance to the Company. Mr. Abate has served as Chief Executive Officer of Redwood Trust Inc. (“Redwood Trust”) since May 2018 and as a director since December 2017. Mr. Abate has been employed with Redwood Trust since April 2006, previously serving as President from July 2016 to May 2018, Chief Financial Officer from March 2012 to August 2017, and Controller from January 2009 to March 2013. Before joining Redwood Trust, Mr. Abate was employed by PricewaterhouseCoopers LLP. He holds a B.A. in accounting and finance from Western Michigan University, and an M.B.A. from the University of California at Berkeley and Columbia University. Recent Insider Transactions • Aug 06
Executive VP & COO recently bought US$185k worth of stock On the 1st of August, Thomas Sa bought around 20k shares on-market at roughly US$9.25 per share. This trade did not impact their existing holding. This was the largest purchase by an insider in the last 3 months. This was Thomas' only on-market trade for the last 12 months. Declared Dividend • Jul 30
Second quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 7th August 2025 Payment date: 21st August 2025 Dividend yield will be 5.6%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 10% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 21% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jul 25
Second quarter 2025 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2025 results: EPS: US$0.10 (down from US$0.15 in 2Q 2024). Revenue: US$47.3m (up 15% from 2Q 2024). Net income: US$6.39m (down 31% from 2Q 2024). Profit margin: 14% (down from 22% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 1.1%. Earnings per share (EPS) missed analyst estimates by 47%. Revenue is forecast to grow 7.5% p.a. on average during the next 2 years, compared to a 7.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 18% per year but the company’s share price has only fallen by 7% per year, which means it has not declined as severely as earnings. Duyuru • May 27
Heritage Commerce Corp Announces Board Changes Heritage Commerce Corp. announced the appointment of Julianne Biagini-Komas as Chair of the Board of Directors, replacing Chairman Jack W. Conner who has assumed the role of Chair Emeritus and will remain on the Board through October 2025. Ms. Biagini-Komas, a Certified Public Accountant, has served as Vice Chair of the Board since October 2024, as a director since 2014, and as the Chair of the Audit Committee since 2020. The Company also announced the retirement of Laura Roden from the Board at the conclusion of the Company’s Annual Meeting of the Shareholders this year. Declared Dividend • Apr 28
First quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 8th May 2025 Payment date: 22nd May 2025 Dividend yield will be 5.8%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 10% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 13% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Apr 25
First quarter 2025 earnings: EPS exceeds analyst expectations First quarter 2025 results: EPS: US$0.19 (up from US$0.17 in 1Q 2024). Revenue: US$45.8m (up 9.1% from 1Q 2024). Net income: US$11.6m (up 14% from 1Q 2024). Profit margin: 25% (up from 24% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 5.6%. Revenue is forecast to grow 8.9% p.a. on average during the next 2 years, compared to a 6.9% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 11% per year whereas the company’s share price has fallen by 7% per year. Reported Earnings • Mar 10
Full year 2024 earnings: EPS in line with analyst expectations despite revenue beat Full year 2024 results: EPS: US$0.66 (down from US$1.06 in FY 2023). Revenue: US$170.3m (down 11% from FY 2023). Net income: US$40.5m (down 37% from FY 2023). Profit margin: 24% (down from 34% in FY 2023). The decrease in margin was primarily driven by lower revenue. Net interest margin (NIM): 3.28% (down from 3.70% in FY 2023). Cost-to-income ratio: 65.9% (up from 52.6% in FY 2023). Non-performing loans: 0.22% (down from 0.23% in FY 2023). Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 8.8% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 6% per year. Duyuru • Feb 04
Heritage Commerce Corp and Heritage Bank of Commerce Announce Appointment of Janisha Sabnani as Executive Vice President and General Counsel Heritage Commerce Corp, parent company of Heritage Bank of Commerce announced the appointment of Janisha Sabnani as Executive Vice President and General Counsel of the Company and the Bank. As General Counsel, Ms. Sabnani will report directly to Chief Executive Officer (“CEO”) Robertson “Clay” Jones and will have primary responsibility for advising executive management, directors, and business unit executives on all legal and regulatory matters. With over fifteen years’ experience in financial services and private practice, Ms. Sabnani brings a wealth of knowledge and expertise to team. Prior to joining Heritage Bank of Commerce, Ms. Sabnani held a progression of roles at First Republic Bank, culminating as Senior Vice President, Deputy General Counsel & Assistant Secretary. Ms. Sabnani also spent several years in private practice as a corporate attorney at Skadden, Arps, Slate, Meagher & Flom, LLP. She also served in a variety of advisory and board roles in Northern California, including with The BASIC Fund and Martha Stoumen Wines. Ms. Sabnani holds a J.D. from the New York University School of Law, an M.B.A. from the New York University Leonard Stern School of Business, and a B.A. in Political Science and Mass Communications from the University of California, Berkeley. Major Estimate Revision • Jan 30
Consensus EPS estimates increase by 12% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has improved. 2025 revenue forecast increased from US$177.9m to US$190.9m. EPS estimate increased from US$0.706 to US$0.793 per share. Net income forecast to grow 21% next year vs 11% growth forecast for Banks industry in the US. Consensus price target broadly unchanged at US$11.58. Share price rose 5.5% to US$9.62 over the past week. Declared Dividend • Jan 27
Fourth quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 6th February 2025 Payment date: 20th February 2025 Dividend yield will be 5.5%, which is higher than the industry average of 3.2%. Sustainability & Growth Dividend is covered by earnings (79% payout ratio) and is expected to be covered in 3 years' time (59% forecast payout ratio). The dividend has increased by an average of 13% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 30% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jan 24
Full year 2024 earnings: EPS in line with analyst expectations despite revenue beat Full year 2024 results: EPS: US$0.66 (down from US$1.06 in FY 2023). Revenue: US$170.3m (down 11% from FY 2023). Net income: US$40.5m (down 37% from FY 2023). Profit margin: 24% (down from 34% in FY 2023). The decrease in margin was primarily driven by lower revenue. Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) were mostly in line with analyst estimates. Revenue is forecast to grow 7.0% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 9% per year. Duyuru • Jan 24
Heritage Commerce Corp Declares Regular Quarterly Cash Dividend, Payable on February 20, 2025 Heritage Commerce Corp. announced that its Board of Directors had declared its regular quarterly cash dividend of $0.13 per share to holders of its common stock. The dividend will be payable on February 20, 2025, to shareholders of record at the close of the business day on February 6, 2025. Recent Insider Transactions Derivative • Jan 15
Independent Director exercised options to buy US$283k worth of stock. On the 10th of January, Stephen Heitel exercised options to buy 31k shares at a strike price of around US$4.92, costing a total of US$152k. This transaction amounted to 18% of their direct individual holding at the time of the trade. Since March 2024, Stephen has owned 176.19k shares directly. Company insiders have collectively bought US$198k more than they sold, via options and on-market transactions, in the last 12 months. Board Change • Jan 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 5 experienced directors. 3 highly experienced directors. President, CEO & Director Clay Jones was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions Derivative • Dec 01
President exercised options and sold US$99k worth of stock On the 26th of November, Robertson Jones exercised 37.05k options at around US$4.92, then sold 17k of the shares acquired at an average of US$10.73 per share and kept the remainder. For the year to December 2019, Robertson's total compensation was 41% salary and 59% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since March 2024, Robertson's direct individual holding has increased from 214.21k shares to 225.38k. Company insiders have collectively bought US$173k more than they sold, via options and on-market transactions, in the last 12 months. Declared Dividend • Oct 28
Third quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 7th November 2024 Payment date: 21st November 2024 Dividend yield will be 5.2%, which is higher than the industry average of 3.2%. Sustainability & Growth Dividend is covered by earnings (74% payout ratio) and is expected to be covered in 3 years' time (69% forecast payout ratio). The dividend has increased by an average of 13% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to grow by 9.4% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Oct 25
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: US$0.17 (down from US$0.26 in 3Q 2023). Revenue: US$42.0m (down 11% from 3Q 2023). Net income: US$10.5m (down 34% from 3Q 2023). Profit margin: 25% (down from 33% in 3Q 2023). Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) exceeded analyst estimates by 2.0%. Revenue is forecast to grow 4.9% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 2% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Duyuru • Oct 25
Heritage Commerce Corp Declares Regular Quarterly Cash Dividend, Payable on November 21, 2024 Heritage Commerce Corp. announced that its Board of Directors had declared its regular quarterly cash dividend of $0.13 per share to holders of its common stock. The dividend will be payable on November 21, 2024, to shareholders of record at the close of the business day on November 7, 2024. New Risk • Oct 11
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Duyuru • Oct 04
Heritage Commerce Corp and Heritage Bank of Commerce Announce the Appointment of Thomas A. Sa as Chief Operating Officer Heritage Commerce Corp., parent company of Heritage Bank of Commerce (Bank) announced the appointment of Thomas A. Sa as the Chief Operating Officer (“COO”) of the Company and the Bank. As COO, Mr. Sa will report directly to Chief Executive Officer (“CEO”) Robertson “Clay” Jones and will have primary responsibility for banking operations, risk management, and information technology systems. Mr. Sa had previously served as President, Chief Operating Officer and Chief Financial Officer of California BanCorp and its subsidiary, California Bank of Commerce, which merged with Southern California Bancorp in July 2024. Mr. Sa has more than thirty years’ experience in a variety of increasingly responsible positions in California-based community and regional banks. Duyuru • Aug 16
Heritage Commerce Corp Announces Board Changes Heritage Commerce Corp. announced the retirement of Ranson W. Webster from the Board of Directors, effective October 1, 2024. As one of the original founders, Webster joined the Board in 2004 and has served as Vice Chair of the Boards of Directors of the Company and the Bank. Director Julianne M. Biagini-Komas will assume the role of Vice Chair of both boards effective on the same date. Ms. Biagini-Komas is an accomplished business executive with extensive expertise in accounting, finance, operations and strategic planning. She has served as an Independent Director of the Company and the Bank since August 20, 2015, and is currently the Audit Committee Chairperson and Member of the Personnel and Compensation Committee. She was a Director of Focus Business Bank prior to the acquisition by the Company in 2015. She also served most recently as Vice President, Finance and Human Resources of CNEX Labs Inc. and Chief Financial Officer of Quantumscape Corporation. She began her career at KPMG and is a Certified Public Accountant in California with a Bachelor of Science in Accounting from San Jose State University and a Master in Business Administration from Santa Clara University. Major Estimate Revision • Aug 01
Consensus EPS estimates fall by 11% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$174.3m to US$170.6m. EPS estimate also fell from US$0.73 per share to US$0.648 per share. Net income forecast to shrink 11% next year vs 8.5% growth forecast for Banks industry in the US . Consensus price target up from US$10.33 to US$11.50. Share price fell 3.4% to US$10.35 over the past week. Buy Or Sell Opportunity • Aug 01
Now 20% undervalued Over the last 90 days, the stock has risen 23% to US$10.35. The fair value is estimated to be US$13.00, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 7.7% over the last 3 years. Earnings per share has grown by 9.6%. Revenue is forecast to grow by 0.5% in a year. Earnings are forecast to decline by 11% in the next year. Price Target Changed • Jul 29
Price target increased by 11% to US$11.50 Up from US$10.33, the current price target is an average from 6 analysts. New target price is 7.9% above last closing price of US$10.66. Stock is up 11% over the past year. The company is forecast to post earnings per share of US$0.65 for next year compared to US$1.06 last year. Declared Dividend • Jul 29
Second quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 8th August 2024 Payment date: 22nd August 2024 Dividend yield will be 4.9%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 16% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to decline by 1.4% over the next year. However, it would need to fall by 27% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Jul 26
Second quarter 2024 earnings: EPS and revenues miss analyst expectations Second quarter 2024 results: EPS: US$0.15 (down from US$0.27 in 2Q 2023). Revenue: US$41.3m (down 14% from 2Q 2023). Net income: US$9.23m (down 44% from 2Q 2023). Profit margin: 22% (down from 34% in 2Q 2023). The decrease in margin was primarily driven by lower revenue. Revenue missed analyst estimates by 3.0%. Earnings per share (EPS) also missed analyst estimates by 17%. Revenue is forecast to grow 3.6% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has fallen by 1% per year, which means it is significantly lagging earnings. Duyuru • Jul 26
Heritage Commerce Corp. Declares Regular Quarterly Cash Dividend, Payable on August 22, 2024 Heritage Commerce Corp. announced that its Board of Directors had declared its regular quarterly cash dividend of $0.13 per share to holders of its common stock. The dividend will be payable on August 22, 2024, to shareholders of record at the close of the business day on August 8, 2024. Valuation Update With 7 Day Price Move • Jul 16
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to US$9.96, the stock trades at a forward P/E ratio of 13x. Average forward P/E is 12x in the Banks industry in the US. Total returns to shareholders of 5.6% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$13.81 per share. Declared Dividend • May 01
First quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 8th May 2024 Payment date: 23rd May 2024 Dividend yield will be 6.4%, which is higher than the industry average of 3.2%. Sustainability & Growth The dividend has increased by an average of 16% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to decline by 6.3% over the next year. However, it would need to fall by 37% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Apr 27
First quarter 2024 earnings: EPS and revenues miss analyst expectations First quarter 2024 results: EPS: US$0.17 (down from US$0.31 in 1Q 2023). Revenue: US$42.0m (down 19% from 1Q 2023). Net income: US$10.2m (down 46% from 1Q 2023). Profit margin: 24% (down from 36% in 1Q 2023). The decrease in margin was driven by lower revenue. Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) also missed analyst estimates by 6.4%. Revenue is forecast to grow 2.2% p.a. on average during the next 2 years, compared to a 6.0% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 15% per year but the company’s share price has fallen by 13% per year, which means it is significantly lagging earnings. Duyuru • Apr 12
Heritage Commerce Corp, Annual General Meeting, May 23, 2024 Heritage Commerce Corp, Annual General Meeting, May 23, 2024, at 13:00 Pacific Daylight. Agenda: To elect 10 members of the Board of Directors, each for a term of one year; to consider an advisory proposal on the frequency of votes on executive compensation; to consider an advisory proposal on the Company’s 2023 executive compensation; to consider and ratify the selection of Crowe LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2024; and to transact such other business as may properly come before the meeting, and any adjournment or postponement. New Risk • Mar 18
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: US$62k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 10% per year for the foreseeable future. Minor Risk Significant insider selling over the past 3 months (US$62k sold). Reported Earnings • Mar 13
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: US$1.06 (down from US$1.10 in FY 2022). Revenue: US$191.5m (up 1.2% from FY 2022). Net income: US$64.4m (down 3.2% from FY 2022). Profit margin: 34% (down from 35% in FY 2022). The decrease in margin was driven by higher expenses. Net interest margin (NIM): 3.70% (up from 3.57% in FY 2022). Cost-to-income ratio: 52.6% (up from 49.9% in FY 2022). Non-performing loans: 0.23% (up from 0.07% in FY 2022). Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 1.4%. Revenue is forecast to stay flat during the next 2 years compared to a 5.9% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has fallen by 10% per year, which means it is significantly lagging earnings. Recent Insider Transactions Derivative • Feb 07
Independent Chairman of the Board notifies of intention to sell stock Jack Conner intends to sell 7k shares in the next 90 days after lodging an Intent To Sell Form on the 30th of January. If the sale is conducted around the recent share price of US$9.20, it would amount to US$64k. Since March 2023, Jack's direct individual holding has increased from 136.34k shares to 155.87k. Company insiders have collectively bought US$640k more than they sold, via options and on-market transactions, in the last 12 months. Major Estimate Revision • Feb 02
Consensus EPS estimates fall by 14% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has deteriorated. 2024 revenue forecast decreased from US$188.1m to US$178.1m. EPS estimate also fell from US$0.917 per share to US$0.792 per share. Net income forecast to shrink 25% next year vs 3.5% decline forecast for Banks industry in the US. Consensus price target broadly unchanged at US$10.83. Share price fell 6.1% to US$8.63 over the past week. Declared Dividend • Feb 01
Fourth quarter dividend of US$0.13 announced Dividend of US$0.13 is the same as last year. Ex-date: 7th February 2024 Payment date: 22nd February 2024 Dividend yield will be 5.8%, which is higher than the industry average of 3.1%. Sustainability & Growth Dividend is well covered by earnings (49% payout ratio) and is expected to be covered in 3 years' time (60% forecast payout ratio). The dividend has increased by an average of 16% per year over the past 10 years and has been stable with no material reductions to payments, indicating a long track record of dividend growth and stability. EPS is expected to decline by 20% over the next 2 years. However, it would need to fall by 45% to increase the payout ratio to a potentially unsustainable range. Reported Earnings • Jan 26
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: US$1.06 (down from US$1.10 in FY 2022). Revenue: US$191.5m (up 1.2% from FY 2022). Net income: US$64.4m (down 3.2% from FY 2022). Profit margin: 34% (down from 35% in FY 2022). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.4%. Earnings per share (EPS) also missed analyst estimates by 1.4%. Revenue is forecast to stay flat during the next 2 years compared to a 5.5% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 21% per year but the company’s share price has only increased by 2% per year, which means it is significantly lagging earnings growth. Buy Or Sell Opportunity • Jan 26
Now 21% undervalued Over the last 90 days, the stock has risen 11% to US$9.19. The fair value is estimated to be US$11.59, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 13% over the last 3 years. Earnings per share has grown by 21%. Revenue is forecast to grow by 0.5% in 2 years. Earnings are forecast to decline by 12% in the next 2 years. Recent Insider Transactions Derivative • Jan 14
Independent Director exercised options to buy US$299k worth of stock. On the 10th of January, Stephen Heitel exercised options to buy 32k shares at a strike price of around US$3.98, costing a total of US$126k. This transaction amounted to 23% of their direct individual holding at the time of the trade. Since March 2023, Stephen's direct individual holding has increased from 100.93k shares to 138.55k. Company insiders have collectively bought US$452k more than they sold, via options and on-market transactions, in the last 12 months.