Profile: Heritage Commerce Corp (HTBK.OQ)
22 Feb 2019
Heritage Commerce Corp, incorporated on October 9, 1997, is a bank holding company. The Company, through its subsidiary Heritage Bank of Commerce (the Bank), provides a range of banking services. The Bank is a California state-chartered multi-community independent bank that offers a range of commercial banking services to small and medium-sized businesses and their owners, managers and employees. As of December 31, 2016, the Company operated through 11 service branch offices located in the southern and eastern regions of the general San Francisco Bay Area of California in the counties of Santa Clara, Alameda, Contra Costa and San Benito. The Company's subsidiary, CSNK Working Capital Finance Corp., doing business as Bay View Funding, provides business-essential working capital factoring financing to various industries across the United States.
The Company offers a multitude of other products and services to complement its lending and deposit services. These include cashier's checks, bank-by-mail, night depositories, safe deposit boxes, direct deposit, automated payroll services, electronic funds transfers, online banking, online bill pay, homeowner association services and other customary banking services. As of December 31, 2016, the Bank operated automated teller machines (ATMs) at five different locations. In addition to the traditional financial services offered, the Bank offers remote deposit capture, automated clearing house origination, electronic data interchange and check imaging.
The Company's lending activities include commercial loans, real estate loans, construction and land development loans, consumer loans and small business administration (SBA) guaranteed loans. The Company's commercial loan portfolio consists of operating secured and unsecured loans advanced for working capital, equipment purchases and other business purposes. The Bank also engages in SBA lending. The Company's commercial real estate loan portfolio consists of loans secured by commercial real estate. The Bank offers both fixed and floating rate loans. As of December 31, 2016, the Bank's total loans amounted to $1.503 billion.
The Company classifies its securities as either available-for-sale or held-to-maturity. The Company's portfolio includes the United States Treasury securities and the United States Government sponsored entities' debt securities for liquidity and pledging; mortgage-backed securities; municipal obligations, and single entity issue trust preferred securities. The Company's securities available-for-sale portfolio consists of agency mortgage-backed securities (all issued by the United States Government sponsored entities), the United Sates Treasuries, single entity issue trust preferred securities, the United States Government agency securities and corporate bonds. As of December 31, 2016, the Bank's total securities available-for-sale amounted to $306.6 million.
Sources of Funds
The Company offers a range of deposit products for business banking and retail markets. It offers checking accounts, interest-bearing transaction accounts, savings accounts, time deposits and retirement accounts. The Company also borrows from the Federal Home Loan Bank of San Francisco and the Federal Reserve Bank of San Francisco. The Company's other sources of funds are scheduled loan payments, maturing investments, loan repayments, income on other earning assets, and the proceeds of loan sales and securities sales. The Company also obtains deposits from wholesale sources, including deposit brokers. As of December 31, 2016, the Bank's total deposits amounted to $2.3 billion.
Heritage Commerce Corp
150 Almaden Boulevard
SAN JOSE CA 95113