Heritage Commerce Corp (HTBK)
NASDAQ:HTBK
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Heritage Commerce
(NASDAQ:HTBK)
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Rating:74Outperform
Price Target:
$14.00
â–²(4.71% Upside)
Action:ReiteratedDate:04/02/26
HTBK scores well primarily on solid financials (improving 2025 earnings/cash flow and a conservative balance sheet) and supportive valuation (moderate P/E with a high dividend yield). The score is held back by mixed technical momentum and some merger-related legal overhang despite the merger’s clear progress.
Positive Factors
Balance-sheet strength
A conservative capital structure and steady equity growth provide durable resilience to deposit shocks, support sustained commercial lending capacity, and give the bank flexibility to absorb credit losses or fund strategic steps (including the CVB transaction) without meaningfully increasing funding stress.
Negative Factors
Merger litigation and disclosure risk
Multiple shareholder suits and supplemental disclosures create governance and execution risk for the merger. Litigation can delay closing, increase transaction costs, prompt further revisions to deal economics or disclosure, and distract management during a critical integration period.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
A conservative capital structure and steady equity growth provide durable resilience to deposit shocks, support sustained commercial lending capacity, and give the bank flexibility to absorb credit losses or fund strategic steps (including the CVB transaction) without meaningfully increasing funding stress.
Read all positive factors
Heritage Commerce (HTBK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$823.50M
Dividend Yield4.16%
Average Volume (3M)394.92K
Price to Earnings (P/E)12.2
Beta (1Y)0.84
Revenue Growth8.23%
EPS Growth-0.07%
CountryUS
Employees350
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.25
Shares Outstanding61,593,285
10 Day Avg. Volume375,206
30 Day Avg. Volume394,924
Financial Highlights & Ratios
PEG Ratio0.85
Price to Book (P/B)1.04
Price to Sales (P/S)2.77
P/FCF Ratio12.12
Enterprise Value/Market Cap1.02
Enterprise Value/Revenue3.16
Enterprise Value/Gross Profit4.35
Enterprise Value/Ebitda11.82
Forecast
1Y Price Target
$15.00Price Target Upside12.19% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1
Revenue Forecast (FY)$214.67M
Heritage Commerce Business Overview & Revenue Model
Company Description
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 b...
How the Company Makes Money
Heritage Commerce primarily makes money through traditional banking activities. The core earnings driver is net interest income: the bank collects interest and fees on loans (such as commercial and industrial lending, commercial real estate loans,...
Heritage Commerce Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
82
Very Positive
Cash Flow
77
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 266.14M | 251.45M | 243.30M | 198.94M | 162.94M |
| Gross Profit | 193.31M | 170.26M | 191.47M | 189.22M | 158.95M |
| EBITDA | 71.21M | 60.20M | 93.94M | 98.12M | 69.94M |
| Net Income | 47.83M | 40.53M | 64.44M | 66.56M | 47.70M |
Balance Sheet | |||||
| Total Assets | 5.76B | 5.65B | 5.19B | 5.15B | 5.50B |
| Cash, Cash Equivalents and Short-Term Investments | 614.64M | 1.22B | 850.76M | 796.20M | 1.41B |
| Total Debt | 39.80M | 39.65M | 39.50M | 39.35M | 39.92M |
| Total Liabilities | 5.06B | 4.96B | 4.52B | 4.52B | 4.90B |
| Stockholders Equity | 708.57M | 689.73M | 672.90M | 632.46M | 598.03M |
Cash Flow | |||||
| Free Cash Flow | 60.77M | 37.35M | 71.34M | 69.07M | 56.60M |
| Operating Cash Flow | 61.67M | 38.97M | 73.01M | 69.85M | 56.85M |
| Investing Cash Flow | -431.51M | 110.62M | 70.18M | -669.49M | -696.83M |
| Financing Cash Flow | 48.74M | 410.40M | -41.67M | -399.98M | 815.13M |
Heritage Commerce Technical Analysis
Positive
13.37
Price Trends
12.65
Positive
12.18
Positive
10.95
Positive
Market Momentum
0.22
Negative
68.58
Neutral
92.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTBK, the sentiment is Positive. The current price of 13.37 is above the 20-day moving average (MA) of 12.48, above the 50-day MA of 12.65, and above the 200-day MA of 10.95, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 68.58 is Neutral, neither overbought nor oversold. The STOCH value of 92.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HTBK.
Heritage Commerce Risk Analysis
Heritage Commerce disclosed 61 risk factors in its most recent earnings report. Heritage Commerce reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Heritage Commerce Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $742.03M | 9.08 | 11.54% | 1.59% | 9.34% | 25.21% | |
75 Outperform | $722.34M | 10.33 | 12.51% | 1.57% | 5.87% | 37.99% | |
74 Outperform | $823.50M | 12.18 | 6.83% | 4.16% | 8.23% | -0.07% | |
73 Outperform | $721.32M | 12.33 | 9.01% | 0.84% | 13.41% | 41.78% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $639.34M | 11.36 | 11.96% | 0.84% | 8.26% | 94.53% |
* Financial Sector Average
HTBK
Heritage Commerce
13.37
5.50
69.91%
HIFS
Hingham Institution For Savings
293.24
65.62
28.83%
SMBC
Southern Missouri Bancorp
66.80
19.55
41.37%
SMBK
SmartFinancial
42.19
14.58
52.78%
SPFI
South Plains Financial
44.23
13.58
44.31%
Heritage Commerce Corporate Events
Business Operations and StrategyM&A Transactions
Heritage Commerce Nears Completion of Merger with CVB
Positive
Apr 1, 2026
As of April 1, 2026, Heritage Commerce Corp and CVB Financial Corp have obtained all required regulatory approvals for the planned merger of Heritage into CVBF and of Heritage Bank of Commerce into Citizens Business Bank. The companies expect to c...
Business Operations and StrategyM&A TransactionsShareholder Meetings
Heritage Commerce Shareholders Approve Merger With CVB Financial
Positive
Mar 27, 2026
On March 26, 2026, Heritage Commerce Corp held a special shareholder meeting at which investors approved the merger agreement to combine Heritage with CVB Financial Corp, along with advisory approval of merger-related executive compensation and au...
Business Operations and StrategyLegal ProceedingsM&A TransactionsRegulatory Filings and ComplianceShareholder Meetings
Heritage Commerce issues added disclosures amid merger lawsuits
Negative
Mar 18, 2026
On December 17, 2025, CVB Financial Corp. and Heritage Commerce Corp. agreed to merge, with Heritage to be absorbed into CVBF and its unit Heritage Bank of Commerce combined into Citizens Business Bank, and joint proxy materials were declared effe...
Dividends
Heritage Commerce Declares Regular Quarterly Cash Dividend
Positive
Mar 12, 2026
On March 11, 2026, Heritage Commerce Corp, the Nasdaq-listed parent of Heritage Bank of Commerce in San Jose, announced that its board declared a regular quarterly cash dividend of $0.13 per share for holders of its common stock. The dividend is s...
DividendsFinancial DisclosuresM&A Transactions
Heritage Commerce Reports Strong 2025 Results, Declares Dividend
Positive
Jan 22, 2026
On January 22, 2026, Heritage Commerce Corp reported unaudited fourth-quarter and full-year 2025 results showing strong balance-sheet growth, wider net interest margins and improved efficiency, with adjusted fourth-quarter earnings up 62% year ove...
Executive/Board Changes
Heritage Commerce streamlines board following director retirement
Neutral
Jan 2, 2026
On December 31, 2025, Heritage Commerce Corp announced that Director Jason DiNapoli would retire from the board effective the same day, with the company emphasizing that his departure was not due to any disagreement over operations, policies, prac...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.