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Upturn AI SWOT - About
Heritage Commerce Corp (HTBK)
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Upturn Advisory Summary
03/13/2025: HTBK (1-star) is a SELL. SELL since 3 days. Profits (-8.43%). Updated daily EoD!
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit -5.34% | Avg. Invested days 32 | Today’s Advisory SELL |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/13/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 582.48M USD | Price to earnings Ratio 14.36 | 1Y Target Price 11.75 |
Price to earnings Ratio 14.36 | 1Y Target Price 11.75 | ||
Volume (30-day avg) 437371 | Beta 0.9 | 52 Weeks Range 7.25 - 11.12 | Updated Date 04/2/2025 |
52 Weeks Range 7.25 - 11.12 | Updated Date 04/2/2025 | ||
Dividends yield (FY) 5.50% | Basic EPS (TTM) 0.66 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 23.8% | Operating Margin (TTM) 32.72% |
Management Effectiveness
Return on Assets (TTM) 0.75% | Return on Equity (TTM) 5.95% |
Valuation
Trailing PE 14.36 | Forward PE 11.05 | Enterprise Value -316653856 | Price to Sales(TTM) 3.42 |
Enterprise Value -316653856 | Price to Sales(TTM) 3.42 | ||
Enterprise Value to Revenue 3.6 | Enterprise Value to EBITDA - | Shares Outstanding 61442900 | Shares Floating 55492186 |
Shares Outstanding 61442900 | Shares Floating 55492186 | ||
Percent Insiders 4.04 | Percent Institutions 78.7 |
Analyst Ratings
Rating 4.17 | Target Price 11.75 | Buy 3 | Strong Buy 2 |
Buy 3 | Strong Buy 2 | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Heritage Commerce Corp
Company Overview
History and Background
Heritage Commerce Corp was founded in 1998 and is headquartered in San Jose, California. It evolved from a single branch operation to a multi-branch commercial bank focusing on the San Francisco Bay Area. Significant milestones include strategic acquisitions and expansions within its target market.
Core Business Areas
- Commercial Banking: Provides a wide range of commercial banking services, including loans, deposit accounts, cash management, and online banking to small and medium-sized businesses and professionals.
- Real Estate Lending: Offers commercial real estate loans for various property types.
- SBA Lending: Provides Small Business Administration (SBA) loans.
Leadership and Structure
Walter Kaczmarek serves as the President and CEO. The organizational structure includes various departments such as Commercial Banking, Credit Administration, Finance, and Operations, all reporting to the executive management team and board of directors.
Top Products and Market Share
Key Offerings
- Commercial Loans: Commercial loans are a primary offering, catering to small and medium-sized businesses. The market is highly competitive with numerous local and regional banks. Revenue generated from this segment is a significant portion of their total revenues. Competitors include Bank of America, Wells Fargo, and other regional banks.
- Deposit Accounts: Deposit accounts, including checking, savings, and money market accounts, form a crucial part of Heritage Commerce Corp's business. They compete with numerous banks and credit unions in the Bay Area to attract deposits. This includes various account types for business, not-for-profit and individuals. Competitors include Wells Fargo, Chase and many others.
Market Dynamics
Industry Overview
The banking industry is currently facing increased regulatory scrutiny, rising interest rates, and increasing competition from fintech companies. Regional banks are competing to maintain deposit base and loan growth.
Positioning
Heritage Commerce Corp is positioned as a relationship-focused community bank serving the San Francisco Bay Area. Its competitive advantages include local market expertise, personalized service, and quick decision-making.
Total Addressable Market (TAM)
The total addressable market for banking services in the San Francisco Bay Area is estimated to be substantial, potentially exceeding hundreds of billions of dollars. Heritage Commerce Corp's position relative to this TAM is as a smaller, focused regional player aiming to capture a specific segment of the market.
Upturn SWOT Analysis
Strengths
- Strong local market knowledge
- Experienced management team
- Focus on relationship banking
- Solid credit quality
Weaknesses
- Limited geographic diversification
- Smaller size compared to larger competitors
- Reliance on the San Francisco Bay Area economy
- Vulnerable to interest rate fluctuations
Opportunities
- Expansion into adjacent markets
- Increased focus on digital banking
- Strategic acquisitions
- Growing demand for SBA loans
Threats
- Increased competition from larger banks and fintech companies
- Economic downturn in the Bay Area
- Rising interest rates
- Increased regulatory burden
Competitors and Market Share
Key Competitors
- WFC
- BAC
- TCBI
Competitive Landscape
Heritage Commerce Corp competes with larger national banks and other regional banks in the Bay Area. Its advantages include local expertise and relationship banking. Disadvantages include smaller size and limited geographic reach.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Historical growth is not available without real-time data.
Future Projections: Future projections are not available without real-time data.
Recent Initiatives: Recent initiatives include focusing on SBA lending and expanding digital banking capabilities.
Summary
Heritage Commerce Corp is a smaller regional bank focused on the San Francisco Bay Area, leveraging its local expertise and relationship banking approach. While its smaller size and geographic concentration pose risks, it benefits from a strong management team and solid credit quality. Recent initiatives in SBA lending and digital banking could boost growth. The bank must navigate competition from larger players and economic fluctuations effectively.
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TCBI
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Sources and Disclaimers
Data Sources:
- Company filings
- Market research reports
- Industry analysis
Disclaimers:
This analysis is based on available information and is not financial advice. Market conditions and company performance may change.
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 | ||
Sector Financial Services | Industry Banks - Regional | Full time employees 345 | |
Full time employees 345 | |||
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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