Heritage Commerce Corp (HTBK)

Heritage Commerce Corp. reported strong third-quarter financial results, with net income of $14.7 million and diluted EPS of $0.24, surpassing analysts' estimates, leading to a stock price increase. The company declared a regular quarterly cash dividend of $0.13 per share and increased its share repurchase program to $30 million. Analyst ratings and price targets were adjusted by several firms, including upgrades, initiations with overweight ratings, and price target increases, while some firms downgraded the stock. The company reported second-quarter net income of $6.4 million and EPS of $0.10, with adjusted net income of $13.0 million and adjusted EPS of $0.21, beating estimates. The company announced first-quarter net income of $11.6 million and EPS of $0.19, delivering an EPS surprise but slightly missing revenue estimates.

Heritage Commerce Corp. experiences demand seasonality, with the first quarter typically seeing low loan demand and deposit outflows, and the second quarter also characterized by seasonal outflows in deposits. The company aims to navigate these patterns through disciplined underwriting, pricing, and a focus on attracting new clients.

Heritage Commerce Corp. operates as the bank holding company for Heritage Bank of Commerce, providing commercial and personal banking services. The company offers a range of deposit and lending products, including commercial loans, real estate loans, SBA loans, and consumer loans. It also provides treasury and cash management solutions, online and mobile banking, and wealth management advisory services. The company has a Factoring segment, which focuses on factoring originated by Bay View Funding.

Heritage Commerce Corp. is headquartered in San Jose, California, and serves communities across the San Francisco Bay Area through Heritage Bank of Commerce, with full-service branches in various cities.

Heritage Commerce Corp. has maintained a positive brand reputation, with Heritage Bank of Commerce being named one of Forbes' 2024 World's Best Banks, ranking 10th in the US. The bank was also ranked 25th on S&P Global Market Intelligence's top 50 list of best-performing community banks.

Institutional investors and hedge funds own 75.55% of Heritage Commerce Corp. stock, while corporate insiders own 2.71%. HoldCo Asset Management LP acquired a new position, and Wellington Management Group LLP and Hotchkis & Wiley Capital Management LLC boosted their positions. Nuveen LLC, Rhino Investment Partners Inc, CWM LLC, Voya Investment Management LLC, SG Americas Securities LLC, D.A. Davidson & CO., Diversified Trust Co, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd., SummerHaven Investment Management LLC, and PNC Financial Services Group Inc. also adjusted their stakes. COO Thomas A. Sa acquired 20,000 shares of Heritage Commerce stock.