Heritage Commerce Corp Q2 2024 10-Q Filing

TL;DR

HERITAGE COMMERCE CORP 10-Q FILED: Q2 2024 financials are in, check retained earnings & common stock data.

AI Summary

Heritage Commerce Corp filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial performance and position, including key balance sheet items like retained earnings and common stock as of various dates throughout 2023 and 2024. The company is a commercial bank incorporated in California.

Why It Matters

This filing provides investors and analysts with a detailed look at Heritage Commerce Corp's financial health and operational status for the second quarter of 2024, crucial for investment decisions.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing (10-Q) and does not contain immediate, significant negative news.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the financial quarter covered by the report.)
• 2024-08-08 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• HERITAGE COMMERCE CORP (company) — Filer of the 10-Q
• 20240630 (date) — End of the reporting period
• 20240808 (date) — Filing date
• CA (location) — State of incorporation
• 6022 (other) — Standard Industrial Classification for Commercial Banks

FAQ

Key Financial Figures

• $250 — 520 1,087,518 Time deposits - under $250 39,046 38,055 Time deposits - $250

Filing Documents

• htbk-20240630x10q.htm (10-Q) — 9154KB
• htbk-20240630xex31d1.htm (EX-31.1) — 16KB
• htbk-20240630xex31d2.htm (EX-31.2) — 16KB
• htbk-20240630xex32d1.htm (EX-32.1) — 7KB
• htbk-20240630xex32d2.htm (EX-32.2) — 7KB
• 0001558370-24-011622.txt ( ) — 33158KB
• htbk-20240630.xsd (EX-101.SCH) — 89KB
• htbk-20240630_cal.xml (EX-101.CAL) — 119KB
• htbk-20240630_def.xml (EX-101.DEF) — 403KB
• htbk-20240630_lab.xml (EX-101.LAB) — 774KB
• htbk-20240630_pre.xml (EX-101.PRE) — 644KB
• htbk-20240630x10q_htm.xml (XML) — 9850KB

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 43 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 79 Item 4.

Controls and Procedures

Controls and Procedures 79

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 79 Item 1A.

Risk Factors

Risk Factors 80 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 105 Item 3. Defaults Upon Senior Securities 105 Item 4. Mine Safety Disclosures 105 Item 5. Other Information 105 Item 6. Exhibits 106

SIGNATURES

SIGNATURES 107 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, and Rule 3b-6 promulgated thereunder and are intended to be protected by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 statements reflect, and are based upon, facts and circumstances known to or expected by our executive leadership, and intentions and expectations of those individuals, as of the date of this Report. These forward-looking statements are subject to various risks and uncertainties that

—FINANCIAL INFORMATION

Part I—FINANCIAL INFORMATION

—CONSOLIDATED FINANCIAL STATEMENTS

ITEM 1—CONSOLIDATED FINANCIAL STATEMENTS HERITAGE COMMERCE CORP CONSOLIDATED BALANCE SHEETS (Unaudited) June 30, December 31, 2024 2023 (Dollars in thousands) Assets Cash and due from banks $ 37,497 $ 41,592 Other investments and interest-bearing deposits in other financial institutions 610,763 366,537 Total cash and cash equivalents 648,260 408,129 Securities available-for-sale, at fair value 273,043 442,636 Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $ 12 (fair value of $ 527,438 and $ 564,127 , respectively) 621,178 650,565 Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs 1,899 2,205 Loans, net of deferred fees 3,379,793 3,350,378 Allowance for credit losses on loans ( 47,954 ) ( 47,958 ) Loans, net 3,331,839 3,302,420 Federal Home Loan Bank ("FHLB"), Federal Reserve Bank ("FRB") stock and other investments, at cost 32,549 32,540 Company-owned life insurance 80,153 79,489 Premises and equipment, net 10,310 9,857 Goodwill 167,631 167,631 Other intangible assets 7,521 8,627 Accrued interest receivable and other assets 88,641 89,996 Total assets $ 5,263,024 $ 5,194,095 Liabilities and Shareholders' Equity Liabilities: Deposits: Demand, noninterest-bearing $ 1,187,320 $ 1,292,486 Demand, interest-bearing 928,246 914,066 Savings and money market 1,126,520 1,087,518 Time deposits - under $250 39,046 38,055 Time deposits - $250 and over 203,886 192,228 Insured Cash Sweep ("ICS")/Certificates of Deposit Account Registry Service ("CDARS") - interest-bearing demand, money market and time deposits 959,592 854,105 Total deposits 4,444,610 4,378,458 Subordinated debt, net of issuance costs 39,577 39,502 Accrued interest payable and other liabilities 99,638 103,234 Total liabilities 4,583,825 4,521,194 Shareholders' equity: Preferred stock

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View this 10-Q filing on SEC EDGAR