Heritage Commerce Corp Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Heritage Commerce Corp filed its Q1 2024 10-Q, detailing financial data and equity plan information.</b>

AI Summary

HERITAGE COMMERCE CORP (HTBK) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Heritage Commerce Corp filed its 10-Q report for the period ending March 31, 2024. The filing includes data related to Retained Earnings, Common Stock, and various stock option and restricted stock plans. Key dates and events related to equity incentive plans are detailed, including the Equity Incentive Plan 2013 and 2023. The report specifies service charges and fees on deposit accounts for Q1 2024 and Q1 2023. Information on reclassifications out of Accumulated Other Comprehensive Income is provided for Q1 2024 and Q1 2023.

Why It Matters

For investors and stakeholders tracking HERITAGE COMMERCE CORP, this filing contains several important signals. This 10-Q provides a quarterly update on Heritage Commerce Corp's financial position and equity compensation, crucial for investors tracking performance and share dilution. The detailed breakdown of stock options, restricted stock units, and reclassifications from Accumulated Other Comprehensive Income offers insights into the company's capital structure and potential future share issuances.

Risk Assessment

Risk Level: low — HERITAGE COMMERCE CORP shows low risk based on this filing. The filing is a standard 10-Q, providing routine financial disclosures without immediate red flags, indicating a low level of immediate risk.

Analyst Insight

Investors should review the detailed financial statements and equity compensation disclosures to assess the company's performance and potential impact on shareholder value.

Key Numbers

• 2024-03-31 — Conformed Period of Report (10-Q filing)
• 2024-05-09 — Filed As Of Date (10-Q filing)
• 61146835 — Value (Related to Interest Receivable and Other Assets)
• 61253625 — Value (Related to Accrued Interest Payable and Other Liabilities)

Key Players & Entities

• HERITAGE COMMERCE CORP (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-09 (date) — Filed as of date
• 0001053352 (company) — Central Index Key
• 6022 (industry) — Standard Industrial Classification
• CA (location) — State of incorporation
• 2024-01-01 (date) — Start date for Nonqualified Stock Options
• 2024-03-31 (date) — End date for Nonqualified Stock Options

FAQ

Key Dates

• 2024-03-31: Quarter End — Period covered by the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q was officially filed with the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides a snapshot of the company's financial performance and condition during the quarter.)

Retained Earnings

The cumulative amount of net income of a corporation that has not been distributed to its shareholders as dividends. (Indicates the company's ability to reinvest profits back into the business.)

Accumulated Other Comprehensive Income

Includes unrealized gains and losses on investments, foreign currency translation adjustments, and pension plan adjustments. (Reflects changes in equity that are not reported in net income.)

Key Financial Figures

• $250 — 900 1,087,518 Time deposits - under $250 38,105 38,055 Time deposits - $250

Filing Documents

• htbk-20240331x10q.htm (10-Q) — 7229KB
• htbk-20240331xex31d1.htm (EX-31.1) — 16KB
• htbk-20240331xex31d2.htm (EX-31.2) — 16KB
• htbk-20240331xex32d1.htm (EX-32.1) — 7KB
• htbk-20240331xex32d2.htm (EX-32.2) — 7KB
• 0001558370-24-007419.txt (&nbsp;) — 27453KB
• htbk-20240331.xsd (EX-101.SCH) — 88KB
• htbk-20240331_cal.xml (EX-101.CAL) — 118KB
• htbk-20240331_def.xml (EX-101.DEF) — 402KB
• htbk-20240331_lab.xml (EX-101.LAB) — 759KB
• htbk-20240331_pre.xml (EX-101.PRE) — 640KB
• htbk-20240331x10q_htm.xml (XML) — 7896KB

FINANCIAL INFORMATION

Part I. FINANCIAL INFORMATION Item 1. Consolidated Financial Statements (unaudited) 6 Consolidated Balance Sheets 6 Consolidated Statements of Income 7 Consolidated Statements of Comprehensive Income 8 Consolidated Statements of Changes in Shareholders' Equity 9 Consolidated Statements of Cash Flows 10 Notes to Unaudited Consolidated Financial Statements 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 41 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 72 Item 4.

Controls and Procedures

Controls and Procedures 72

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 73 Item 1A.

Risk Factors

Risk Factors 73 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 98 Item 3. Defaults Upon Senior Securities 98 Item 4. Mine Safety Disclosures 98 Item 5. Other Information 98 Item 6. Exhibits 99

SIGNATURES

SIGNATURES 100 2 Table of Contents Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q (this "Report") of Heritage Commerce Corp ("we," "us," "our" or the "Company") contains various statements that may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Rule 175 promulgated thereunder, and Section 21E of the Securities Exchange Act of 1934, as amended, Rule 3b-6 promulgated thereunder and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. These forward-looking statements often can be, but are not always, identified by the use of words such as "assume," "expect," "intend," "plan," "project," "believe," "estimate," "predict," "anticipate," "may," "might," "should," "could," "goal," "potential" and similar expressions. We base these forward-looking statements on our current expectations and projections about future events, our assumptions regarding these events and our knowledge of facts at the time the statements are made. Forward-looking statements may include, among other things, statements relating to our projected growth, anticipated future financial performance, management's long-term performance goals and operational strategies, the performance of our loan and investment portfolios, as well as statements relating to the anticipated effects of those conditions, events and developments on the Company's financial condition and results of operations. These forward-looking statements are subject to various risks and uncertainties that may be outside our control and our actual results could differ materially and adversely from our projected results. Risks and uncertainties that could cause our financial performance to differ materially fr

—FINANCIAL INFORMATION

Part I—FINANCIAL INFORMATION

—CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1—CONSOLIDATED FINANCIAL STATEMENTS HERITAGE COMMERCE CORP CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, December 31, 2024 2023 (Dollars in thousands) Assets Cash and due from banks $ 32,543 $ 41,592 Other investments and interest-bearing deposits in other financial institutions 508,816 366,537 Total cash and cash equivalents 541,359 408,129 Securities available-for-sale, at fair value 404,474 442,636 Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $ 12 (fair value of $ 542,858 and $ 564,127 , respectively) 636,249 650,565 Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs 1,946 2,205 Loans, net of deferred fees 3,336,102 3,350,378 Allowance for credit losses on loans ( 47,888 ) ( 47,958 ) Loans, net 3,288,214 3,302,420 Federal Home Loan Bank ("FHLB"), Federal Reserve Bank ("FRB") stock and other investments, at cost 32,544 32,540 Company-owned life insurance 80,007 79,489 Premises and equipment, net 9,986 9,857 Goodwill 167,631 167,631 Other intangible assets 8,074 8,627 Accrued interest receivable and other assets 85,590 89,996 Total assets $ 5,256,074 $ 5,194,095 Liabilities and Shareholders' Equity Liabilities: Deposits: Demand, noninterest-bearing $ 1,242,059 $ 1,292,486 Demand, interest-bearing 925,100 914,066 Savings and money market 1,124,900 1,087,518 Time deposits - under $250 38,105 38,055 Time deposits - $250 and over 200,739 192,228 Insured Cash Sweep ("ICS")/Certificates of Deposit Account Registry Service ("CDARS") - interest-bearing demand, money market and time deposits 913,757 854,105 Total deposits 4,444,660 4,378,458 Subordinated debt, net of issuance costs 39,539 39,502 Accrued interest payable and other liabilities 95,579 103,234 Total liabilities 4,579,778 4,521,194 Shareholders' equity: Preferred stock

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View this 10-Q filing on SEC EDGAR