Heritage Commerce Corp Q3 2024 10-Q Filed

TL;DR

HERITAGE COMMERCE CORP 10-Q FILED FOR Q3 2024 - FINANCIALS DETAILED

AI Summary

Heritage Commerce Corp filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and position, including key balance sheet items like retained earnings and accumulated other comprehensive income across various reporting periods in 2023 and 2024.

Why It Matters

This filing provides investors with the latest financial snapshot of Heritage Commerce Corp, crucial for understanding its performance and stability.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Latest quarter for which financial data is reported.)
• 2024-12-31 — Fiscal Year End (Indicates the end of the company's annual financial cycle.)

Key Players & Entities

• HERITAGE COMMERCE CORP (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• 20241108 (date) — Filing date

FAQ

Key Financial Figures

• $250 — 676 1,087,518 Time deposits - under $250 39,060 38,055 Time deposits - $250

Filing Documents

• htbk-20240930x10q.htm (10-Q) — 8870KB
• htbk-20240930xex31d1.htm (EX-31.1) — 16KB
• htbk-20240930xex31d2.htm (EX-31.2) — 16KB
• htbk-20240930xex32d1.htm (EX-32.1) — 7KB
• htbk-20240930xex32d2.htm (EX-32.2) — 7KB
• 0001558370-24-015061.txt ( ) — 31354KB
• htbk-20240930.xsd (EX-101.SCH) — 87KB
• htbk-20240930_cal.xml (EX-101.CAL) — 119KB
• htbk-20240930_def.xml (EX-101.DEF) — 395KB
• htbk-20240930_lab.xml (EX-101.LAB) — 774KB
• htbk-20240930_pre.xml (EX-101.PRE) — 630KB
• htbk-20240930x10q_htm.xml (XML) — 9074KB

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 42 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 78 Item 4.

Controls and Procedures

Controls and Procedures 78

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 78 Item 1A.

Risk Factors

Risk Factors 79 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 104 Item 3. Defaults Upon Senior Securities 104 Item 4. Mine Safety Disclosures 104 Item 5. Other Information 104 Item 6. Exhibits 105

SIGNATURES

SIGNATURES 106 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 (UNAUDITED)

ITEM 1—CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) HERITAGE COMMERCE CORP CONSOLIDATED BALANCE SHEETS (Unaudited) September 30, December 31, 2024 2023 (Dollars in thousands) Assets Cash and due from banks $ 49,722 $ 41,592 Other investments and interest-bearing deposits in other financial institutions 906,588 366,537 Total cash and cash equivalents 956,310 408,129 Securities available-for-sale, at fair value 237,612 442,636 Securities held-to-maturity, at amortized cost, net of allowance for credit losses of $ 12 (fair value of $ 531,533 and $ 564,127 , respectively) 604,193 650,565 Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs 1,649 2,205 Loans, net of deferred fees 3,410,236 3,350,378 Allowance for credit losses on loans ( 47,819 ) ( 47,958 ) Loans, net 3,362,417 3,302,420 Federal Home Loan Bank ("FHLB"), Federal Reserve Bank ("FRB") stock and other investments, at cost 32,553 32,540 Company-owned life insurance 80,682 79,489 Premises and equipment, net 10,398 9,857 Goodwill 167,631 167,631 Other intangible assets 6,966 8,627 Accrued interest receivable and other assets 91,185 89,996 Total assets $ 5,551,596 $ 5,194,095 Liabilities and Shareholders' Equity Liabilities: Deposits: Demand, noninterest-bearing $ 1,272,139 $ 1,292,486 Demand, interest-bearing 913,910 914,066 Savings and money market 1,309,676 1,087,518 Time deposits - under $250 39,060 38,055 Time deposits - $250 and over 196,945 192,228 Insured Cash Sweep ("ICS")/Certificates of Deposit Account Registry Service ("CDARS") - interest-bearing demand, money market and time deposits 997,803 854,105 Total deposits 4,729,533 4,378,458 Subordinated debt, net of issuance costs 39,615 39,502 Accrued interest payable and other liabilities 97,096 103,234 Total liabilities 4,866,244 4,521,194 Shareholders' equity:

View Full Filing

View this 10-Q filing on SEC EDGAR