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Upturn AI SWOT - About
Heritage Commerce Corp (HTBK)
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Upturn Advisory Summary
06/30/2025: HTBK (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
6 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $11
1 Year Target Price $11
| 3 | Strong Buy |
| 3 | Buy |
| 0 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -10.52% | Avg. Invested days 31 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 06/30/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 611.64M USD | Price to earnings Ratio 14.6 | 1Y Target Price 11 |
Price to earnings Ratio 14.6 | 1Y Target Price 11 | ||
Volume (30-day avg) 6 | Beta 0.77 | 52 Weeks Range 7.75 - 10.97 | Updated Date 06/30/2025 |
52 Weeks Range 7.75 - 10.97 | Updated Date 06/30/2025 | ||
Dividends yield (FY) 5.31% | Basic EPS (TTM) 0.68 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 24.12% | Operating Margin (TTM) 35.66% |
Management Effectiveness
Return on Assets (TTM) 0.78% | Return on Equity (TTM) 6.12% |
Valuation
Trailing PE 14.6 | Forward PE 11.05 | Enterprise Value -64510528 | Price to Sales(TTM) 3.51 |
Enterprise Value -64510528 | Price to Sales(TTM) 3.51 | ||
Enterprise Value to Revenue 3.65 | Enterprise Value to EBITDA - | Shares Outstanding 61595500 | Shares Floating 58987562 |
Shares Outstanding 61595500 | Shares Floating 58987562 | ||
Percent Insiders 3.96 | Percent Institutions 78.31 |
Analyst Ratings
Rating 3 | Target Price 11 | Buy 3 | Strong Buy 3 |
Buy 3 | Strong Buy 3 | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Heritage Commerce Corp
Company Overview
History and Background
Heritage Commerce Corp was founded in 1998 and serves as the bank holding company for Heritage Bank of Commerce. The bank focuses on serving small to medium-sized businesses and professionals in the San Francisco Bay Area.
Core Business Areas
- Commercial Banking: Offers a range of commercial banking products and services, including commercial loans, lines of credit, and deposit accounts.
- Small Business Banking: Provides banking services tailored to the needs of small businesses, including SBA loans and merchant services.
- Personal Banking: Offers personal banking products such as checking accounts, savings accounts, and personal loans.
Leadership and Structure
The leadership team consists of Walter T. Kaczmarek, CEO, and Lawrence McGovern, CFO. The organizational structure includes various departments such as lending, operations, and finance, all reporting to the executive management team and board of directors.
Top Products and Market Share
Key Offerings
- Commercial Real Estate Loans: Provides financing for commercial real estate projects. Market share data is not readily available; regional banks and national players compete for this market. Competitors include large national banks like Wells Fargo and regional banks such as Bank of Marin and First Republic Bank (prior to its acquisition).
- SBA Loans: Offers Small Business Administration (SBA) loans. Market share data is not readily available; numerous regional banks compete. Competitors include other SBA lenders like U.S. Bank and local credit unions.
- Commercial & Industrial Loans: Provides loans and lines of credit to businesses. Competitors include many regional banks, such as Bank of the West.
Market Dynamics
Industry Overview
The banking industry is currently facing challenges such as rising interest rates, increased regulatory scrutiny, and competition from fintech companies. Economic conditions significantly impact bank lending and profitability.
Positioning
Heritage Commerce Corp is positioned as a community bank focused on serving the San Francisco Bay Area. Its competitive advantage lies in its local knowledge and personalized service. They are also a top SBA Lender.
Total Addressable Market (TAM)
The TAM for banking in the San Francisco Bay Area is substantial, estimated to be in the billions of dollars, encompassing various segments like commercial lending, real estate, and consumer banking. HCBK's position is relatively smaller compared to the overall TAM, but they aim to serve a niche market.
Upturn SWOT Analysis
Strengths
- Strong local presence in the San Francisco Bay Area
- Experienced management team
- Focus on small to medium-sized businesses
- Good asset quality
Weaknesses
- Limited geographic diversification
- Reliance on a single market (San Francisco Bay Area)
- Smaller size compared to larger national banks
- Higher cost of deposits
Opportunities
- Expansion into new markets within California
- Increased adoption of digital banking services
- Growth in the small business sector
- Acquisition of smaller banks or credit unions
Threats
- Increased competition from larger banks and fintech companies
- Economic downturn in the San Francisco Bay Area
- Rising interest rates
- Regulatory changes
Competitors and Market Share
Key Competitors
- WFC
- USB
- SFBC
Competitive Landscape
Heritage Commerce Corp benefits from local knowledge and customer service, but it faces disadvantages in terms of scale and resources compared to larger national banks.
Major Acquisitions
Focus Business Bank
- Year: 2017
- Acquisition Price (USD millions): 63.6
- Strategic Rationale: Expanded Heritage Commerce Corp's presence in the East Bay area.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been steady, driven by organic loan growth and strategic acquisitions. Data not available at time of generation.
Future Projections: Future growth is expected to be moderate, driven by continued economic expansion in the San Francisco Bay Area. Data not available at time of generation.
Recent Initiatives: Recent initiatives include investments in technology to improve the customer experience and expansion of lending services to new industries.
Summary
Heritage Commerce Corp is a relatively stable community bank focused on the San Francisco Bay Area. Its strengths lie in its local market knowledge and customer relationships. However, the bank faces challenges from larger competitors and the economic volatility of its primary market, making diversification and technology investment critical for future growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- SEC Filings
- Analyst Reports (where available)
- FDIC Data
Disclaimers:
This analysis is based on publicly available information and is not financial advice. Market share data is estimated and may not be precise. Financial metrics and performance analysis require access to detailed financial reports.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Heritage Commerce Corp
Exchange NASDAQ | Headquaters San Jose, CA, United States | ||
IPO Launch date 1998-07-30 | President, CEO & Director Mr. Robertson Jones Jr. | ||
Sector Financial Services | Industry Banks - Regional | Full time employees 350 | |
Full time employees 350 | |||
Heritage Commerce Corp operates as the bank holding company for Heritage Bank of Commerce that provides various commercial and personal banking services to residents and the business/professional community in California. Its deposit products for business banking and retail markets include interest and non-interest-bearing demand, savings, and money market accounts, as well as certificates of deposit and time deposits. The company provides commercial loans for working capital, equipment purchases, and other business purposes; commercial real estate loans; commercial and construction loans; small business administration loans; home equity lines of credit; multifamily loans on residential properties; residential mortgage loans; and consumer loans consisting of loans for financing automobiles, various consumer goods, and other personal purposes. In addition, the company offers other banking services, including cashier's checks, bank by mail, night depositories, safe deposit boxes, direct deposit, automated payroll, electronic funds transfer, online bill pay, homeowner association, remote deposit capture, automated clearing house origination, electronic data interchange, and check imaging services, as well as other customary banking, factoring financing, and electronic banking services. Heritage Commerce Corp was founded in 1994 and is headquartered in San Jose, California.
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