NASDAQ$HTBK

Heritage Commerce Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Net income increased compared to the same period last year. Credit quality improved, and capital and liquidity positions remained strong.

Heritage Commerce Corp reported a net income of $11.6 million for Q4 2020, a significant increase from $5.7 million in Q4 2019. The increase was driven by solid earnings and improved credit quality. The company's capital and liquidity positions remained strong.

  • Net income for Q4 2020 was $11.6 million, or $0.19 per diluted share, compared to $5.7 million, or $0.10 per diluted share, for Q4 2019.
  • Nonperforming assets decreased (20%) year-over-year and (23%) on a linked quarter basis, to $7.9 million.
  • A credit of $1.3 million was made to the provision for credit losses on loans.
  • Total deposits increased $499.7 million, or 15%, to $3.91 billion.

Headline financials

Total Revenue

$36.3M

Previous: $41.6M-12.9%
EPS (adj)

$0.19

Previous: $0.22-13.6%
Efficiency Ratio

59.5%

Previous: 73.6%-19.2%
Capital Expenditures

$286K

Previous: -$107K+367.3%
Free Cash Flow

$22.6M

Previous: $17.2M+31.5%
Net Income

$11.6M

Previous: $5.69M+104.5%
Operating Income

$16.1M

Previous: $7.77M+106.5%
Gross Profit

$36.3M

Previous: $41.6M-12.9%
Cash & Equivalents

$1.13B

Previous: $49.4M+2185.3%
Total Assets

$4.63B

Previous: $4.11B+12.7%

Revenue & EPS history

Heritage Commerce · Revenue · Quarterly

$36.3M

Q4 2020-12.9%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

This document contains forward-looking statements that are subject to various risks and uncertainties, which may cause the actual results and performance to differ significantly from expectations.

Tailwinds

  • Company's and the Bank’s consolidated capital ratios exceeded regulatory guidelines for a well-capitalized financial institution
  • Company had a strong liquidity position with $1.13 billion in cash and cash equivalents
  • Available borrowing capacity from sources including the Federal Home Loan Bank (“FHLB”), the Federal Reserve Bank of San Francisco (“FRB”), Federal funds facilities with several financial institutions, and a line of credit with a correspondent bank of $781.6 million
  • Company also had $498.5 million (at fair market value) in unpledged securities available
  • Loan to deposit ratio was 66.91%

Headwinds

  • Current and future economic and market conditions in the United States generally or in the communities we serve
  • Volatility in credit and equity markets and its effect on the global economy
  • Risks associated with concentrations in real estate related loans
  • Changes in the level of NPAs and charge offs and other credit quality measures
  • The effect of the COVID-19 pandemic

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2020

Historical avgQ4 2020

+0.9%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+1.3%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+12.7%

Q1 2023

Best reaction

-6.6%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025-3.8%-6.3%-0.7%
Q3 2025+0.3%-2.1%+3.6%
Q2 2025-3.1%-6.0%+2.0%
Q1 2025-0.5%+0.0%-1.5%
Q4 2024+3.8%+4.7%+14.3%
Q3 2024-2.1%+1.8%+12.4%
Q2 2024+4.1%+2.5%-2.0%
Q1 2024-4.3%-5.0%-2.5%
Q4 2023-5.0%-4.6%-14.4%
Q3 2023+3.4%+2.5%+7.1%
Q2 2023-1.9%-2.3%-12.2%
Q1 2023+12.7%-1.7%+2.1%
Q4 2022-4.9%-3.4%-2.2%
Q3 2022+8.4%+8.4%+10.2%
Q2 2022+1.1%-0.3%-0.6%
Q1 2022-1.2%-0.4%+0.1%
Q4 2021+1.2%+0.6%-2.1%
Q3 2021+4.2%+4.5%-3.1%
Q2 2021-1.4%-1.6%+2.4%
Q1 2021+2.8%+1.3%-0.5%
Q4 2020-3.5%-3.4%+4.5%
Q3 2020+8.4%-0.5%+17.0%
Q2 2020+4.3%-1.7%-2.7%
Q1 2020-0.3%+14.5%-2.8%
Q4 2019-4.0%-6.6%-6.1%
Q3 2019-2.1%+2.7%+6.0%
Q2 2019+0.6%+0.8%-8.0%
Q1 2019-5.1%-2.4%-4.6%
Q4 2018+6.5%+3.4%+12.6%
Q3 2018+6.4%+7.3%+3.9%
Q2 2018+1.4%-9.2%-5.3%
Q1 2018+0.6%+0.3%+1.6%
Q4 2017-1.1%-1.2%+1.5%
Q3 2017+4.2%+5.1%+4.4%
Q2 2017-1.5%+0.1%-3.1%
Q1 2017-3.3%-1.9%-8.5%
Q4 2016-0.1%-2.8%-0.3%
Q3 2016+1.8%+0.4%+15.6%
Q2 2016-1.5%-1.9%+11.8%
Q1 2016-1.4%
Q4 2015+2.4%
Q3 2015-6.6%
Q2 2015+1.5%
Q1 2015+0.7%
Q4 2014-0.5%
Q3 2014+0.5%
Q2 2014+0.6%
Q1 2014+0.9%
Q4 2013-2.8%
Q3 2013+0.5%
Q2 2013-0.7%
Q1 2013-1.3%
Q4 2012+2.0%
Q3 2012-1.7%
Q2 2012+1.8%
Q1 2011-2.7%
Q1 2012+5.0%
Q4 2009+2.8%
Q4 2011+2.8%
Q4 2010+2.8%
Q3 2011+8.0%
Q3 2010+8.0%
Q2 2010+3.2%
Q2 2011+3.2%
Q1 2010+1.0%

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