Heritage Commerce Corp (NASDAQ: HTBK) (“Heritage” or “the company”) is the BHC for subsidiary, Heritage Bank of Commerce (“the bank”), a commercially focused community bank that was formed in 1994, with 17 branches primarily within the San Francisco Bay Area. Heritage is headquartered in San Jose, California, a market in which the company reflects the leading market share among locally headquartered institutions.
The growth strategy has been largely organic, with the occasional opportunistic acquisition, with three bank deals closed since 2017. Heritage has targeted banks in-market with similar operating strategies, and thus, there has not been a material shift in the loan and deposit mix or strategy. Moreover, M&A opportunities are unlikely in the near-term given the uncertainty in the industry. As such, management plans to continue to build out its presence in the Bay Area organically, which was recently supported by a de novo branch opening in…
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