Heritage Commerce (HTBK) 10-K 11 Mar 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2019	Feb. 14, 2020	Jun. 28, 2019
Cover [Abstract]
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	HERITAGE COMMERCE CORP
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		59,548,859
Entity Central Index Key	0001053352
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Public Float			$ 372

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets
Cash and due from banks	$ 49,447	$ 30,273
Other investments and interest-bearing deposits in other financial institutions	407,923	134,295
Total cash and cash equivalents	457,370	164,568
Securities available-for-sale, at fair value	404,825	459,043
Securities held-to-maturity, at amortized cost (fair value of $368,107 at December 31, 2019 and $366,175 at December 31, 2018)	366,560	377,198
Loans held-for-sale - SBA, at lower of cost or fair value, including deferred costs	1,052	2,649
Loans, net of deferred fees	2,533,844	1,886,405
Allowance for loan losses	(23,285)	(27,848)
Loans, net	2,510,559	1,858,557
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	29,842	25,216
Company-owned life insurance	76,027	61,859
Premises and equipment, net	8,250	7,137
Goodwill	167,420	83,753
Other intangible assets	20,415	12,007
Accrued interest receivable and other assets	67,143	44,575
Total assets	4,109,463	3,096,562
Deposits:
Demand, noninterest-bearing	1,450,873	1,021,582
Demand, interest-bearing	798,375	702,000
Savings and money market	982,430	754,277
Time deposits - under $250	54,361	58,661
Time deposits - $250 and over	99,882	86,114
CDARS - interest-bearing demand, money market and time deposits	28,847	14,898
Total deposits	3,414,768	2,637,532
Subordinated debt, net of issuance costs	39,554	39,369
Other short-term borrowings	328
Accrued interest payable and other liabilities	78,105	52,195
Total liabilities	3,532,755	2,729,096
Shareholders' equity:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding at December 31, 2019 and December 31, 2018
Common stock, no par value; 100,000,000 shares authorized at December 31, 2019 and 60,000,000 shares authorized at December 31, 2018; 59,368,156 shares issued and outstanding at December 31, 2019 and 43,288,750 shares issued and outstanding at December 31, 2018	489,745	300,844
Retained earnings	96,741	79,003
Accumulated other comprehensive loss	(9,778)	(12,381)
Total shareholders' equity	576,708	367,466
Total liabilities and shareholders' equity	$ 4,109,463	$ 3,096,562

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Securities held-to-maturity
Securities held-to-maturity, fair value (in dollars)	$ 368,107	$ 366,175
Preferred stock
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, outstanding (in shares)	0	0
Common stock
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	100,000,000	60,000,000
Common stock, shares issued	59,368,156	43,288,750
Common stock, shares outstanding	59,368,156	43,288,750

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Interest income:
Loans, including fees	$ 116,808	$ 105,635	$ 86,346
Securities, taxable	15,836	15,211	13,724
Securities, exempt from Federal tax	2,148	2,225	2,256
Other investments, interest-bearing deposits in other financial institutions and Federal funds sold	7,867	6,774	4,585
Total interest income	142,659	129,845	106,911
Interest expense:
Deposits	8,159	5,506	3,991
Subordinated debt	2,686	2,314	1,394
Short-term borrowings	2	2	2
Total interest expense	10,847	7,822	5,387
Net interest income before provision for loan losses	131,812	122,023	101,524
Provision for loan losses	846	7,421	99
Net interest income after provision for loan losses	130,966	114,602	101,425
Noninterest income:
Service charges and fees on deposit accounts	4,510	4,113	3,231
Increase in cash surrender value of life insurance	1,404	1,045	1,666
Gain (loss) on sales of securities	661	266	(6)
Gain on sales of SBA loans	689	698	1,108
Servicing income	636	709	973
Other	2,344	2,743	2,640
Total noninterest income	10,244	9,574	9,612
Noninterest expense:
Salaries and employee benefits	50,754	43,762	35,719
Occupancy and equipment	6,647	5,411	4,578
Professional fees	3,259	1,969	2,982
Other	24,238	24,379	17,459
Total noninterest expense	84,898	75,521	60,738
Income before income taxes	56,312	48,655	50,299
Income tax expense	15,851	13,324	26,471
Net income	$ 40,461	$ 35,331	$ 23,828
Earnings per common share:
Basic (in dollars per share)	$ 0.87	$ 0.85	$ 0.63
Diluted (in dollars per share)	$ 0.84	$ 0.84	$ 0.62

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 40,461	$ 35,331	$ 23,828
Other comprehensive income (loss):
Change in net unrealized holding (losses) gains on available-for-sale securities and I/O strips	10,620	(6,383)	417
Deferred income taxes	(3,545)	1,925	(175)
Change in net unamortized unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity	(65)	(44)	(51)
Deferred income taxes	19	13	22
Reclassification adjustment for (gains) losses realized in income	(661)	(266)	6
Deferred income taxes	195	79	(3)
Change in unrealized gains (losses) on securities and I/O strips, net of deferred income taxes	6,563	(4,676)	216
Change in net pension and other benefit plan liability adjustment	(5,622)	2,196	(923)
Deferred income taxes	1,662	(649)	388
Change in pension and other benefit plan liability, net of deferred income taxes	(3,960)	1,547	(535)
Other comprehensive income (loss)	2,603	(3,129)	(319)
Total comprehensive income	$ 43,064	$ 32,202	$ 23,509

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Common StockTri Valley Bank	Common StockUnited American Bank	Common StockPresidio bank	Common Stock	Retained Earnings	Accumulated Other Comprehensive Income / (Loss)	Tri Valley Bank	United American Bank	Presidio bank	Total
Balance at Dec. 31, 2016				$ 215,237	$ 52,527	$ (7,914)				$ 259,850
Balance (in shares) at Dec. 31, 2016				37,941,007
Increase (Decrease) in Shareholders' Equity
Net income					23,828					23,828
Other comprehensive income (loss)						(319)				(319)
Issuance of restricted stock awards, net (in shares)				64,136
Amortization of restricted stock awards, net of forfeitures and taxes				$ 912						912
Cash dividend declared					(15,238)					(15,238)
Reclassification associated with the Adoption of ASU 2018-02					1,019	(1,019)
Stock option expense, net of forfeitures				838						838
Stock options exercised				$ 1,368						1,368
Stock options exercised (in shares)				195,740
Balance at Dec. 31, 2017				$ 218,355	62,136	(9,252)				271,239
Balance (in shares) at Dec. 31, 2017				38,200,883
Increase (Decrease) in Shareholders' Equity
Net income					35,331					35,331
Other comprehensive income (loss)						(3,129)				(3,129)
Issuance of common shares to acquire Business	$ 30,725	$ 47,280					$ 30,725	$ 47,280
Issuance of common shares to acquire Business (in shares)	1,889,613	2,826,032
Issuance of restricted stock awards, net (in shares)				95,378
Amortization of restricted stock awards, net of forfeitures and taxes				$ 1,109						1,109
Cash dividend declared					(18,464)					(18,464)
Stock option expense, net of forfeitures				708						708
Stock options exercised				$ 2,667						2,667
Stock options exercised (in shares)				276,844
Balance at Dec. 31, 2018				$ 300,844	79,003	(12,381)				367,466
Balance (in shares) at Dec. 31, 2018				43,288,750
Increase (Decrease) in Shareholders' Equity
Net income					40,461					40,461
Other comprehensive income (loss)						2,603				2,603
Issuance of common shares to acquire Business			$ 177,926						$ 177,926
Issuance of common shares to acquire Business (in shares)			15,684,064
Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options			$ 7,426						$ 7,426
Issuance of restricted stock awards, net (in shares)				128,653
Amortization of restricted stock awards, net of forfeitures and taxes				$ 1,283						1,283
Cash dividend declared					(22,723)					(22,723)
Stock option expense, net of forfeitures and taxes				640						640
Stock options exercised				$ 1,626						1,626
Stock options exercised (in shares)				266,689
Balance at Dec. 31, 2019				$ 489,745	$ 96,741	$ (9,778)				$ 576,708
Balance (in shares) at Dec. 31, 2019				59,368,156

CONSOLIDATED STATEMENTS OF CH_2

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)$ / shares
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Cash dividend declared per share (in dollars per share) | $ / shares	$ 0.48
Presidio bank
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
Issuance of common shares to acquire Presidio Bank, offering costs | $	$ 246

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 40,461	$ 35,331	$ 23,828
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of discounts and premiums on securities	2,590	3,788	4,344
(Gain) loss on sale of securities available-for-sale	(661)	(266)	6
(Gain) on sale of SBA loans	(689)	(698)	(1,108)
Proceeds from sale of SBA loans originated for sale	10,096	11,765	14,733
SBA loans originated for sale	(8,504)	(15,214)	(13,730)
Provision for loan losses	846	7,421	99
Increase in cash surrender value of life insurance	(1,404)	(1,045)	(1,666)
Depreciation and amortization	846	753	786
Amortization of other intangible assets	2,739	1,943	1,361
Stock option expense, net	640	708	838
Amortization of restricted stock awards, net	1,283	1,109	912
Amortization of subordinated debt issuance costs	185	186	110
Effect of changes in:
Accrued interest receivable and other assets	8,407	1,572	10,497
Accrued interest payable and other liabilities	(6,492)	1,219	348
Net cash provided by operating activities	50,343	48,572	41,358
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of securities available-for-sale	(111,954)	(162,806)	(144,898)
Purchase of securities held-to-maturity	(50,041)	(31,496)	(120,505)
Maturities/paydowns/calls of securities available-for-sale	53,566	57,142	57,862
Maturities/paydowns/calls of securities held-to-maturity	59,361	50,773	44,277
Proceeds from sales of securities available-for-sale	167,551	94,291	6,536
Net change in loans	33,810	38,394	(77,199)
Changes in Federal Home Loan Bank stock and other investments	1,161	(4,483)	(2,715)
Purchase of premises and equipment	(203)	(187)	(649)
Cash received in bank acquisition, net of cash paid	117,988	36,028
Net cash provided by (used in) investing activities	271,239	77,656	(237,291)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net change in deposits	2,977	(262,085)	220,849
Issuance of subordinated debt, net of issuance costs			39,073
Redemption of subordinated debt	(10,000)
Payment for early debt extinguishment penalty	(300)
Net change in short-term borrowings	(114)
Exercise of stock options	1,626	2,667	1,368
Common stock offering costs	(246)
Payment of cash dividends	(22,723)	(18,464)	(15,238)
Net cash provided by (used in) financing activities	(28,780)	(277,882)	246,052
Net increase (decrease) in cash and cash equivalents	292,802	(151,654)	50,119
Cash and cash equivalents, beginning of period	164,568	316,222	266,103
Cash and cash equivalents, end of period	457,370	164,568	316,222
Supplemental disclosures of cash flow information:
Interest paid	9,935	7,528	5,166
Income taxes paid	17,730	12,838	17,256
Supplemental schedule of non-cash activity:
Recording of right to use assets in exchange for lease obligations	9,566
Transfer of loans held-for-sale to loan portfolio	$ 694	$ 4,917	$ 2,391

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS - Summary of Assets Acquired and Liabilities Assumed Through Acquisition (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Summary of assets acquired and liabilities assumed through acquisitions:
Cash and cash equivalents, net of cash paid	$ 117,988	$ 36,028
Securities available-for-sale	45,069	63,723
Securities held-to-maturity	463
Net loans	685,964	336,446
Premises and equipment	1,756	350
Goodwill	83,667	38,089
Other intangible assets	11,147	8,361
Company owned life insurance	12,764
Other assets, net	29,397	14,736
Deposits	(774,259)	(416,628)
Subordinated debt	(10,000)
Other borrowings	(442)	(62)
Other liabilities	(17,916)	(3,038)
Presidio bank
Summary of assets acquired and liabilities assumed through acquisitions:
Securities available-for-sale	45,069
Securities held-to-maturity	463
Net loans	685,964
Premises and equipment	1,756
Other assets, net	42,161
Deposits	(774,259)
Other borrowings	(442)
Other liabilities	(17,916)
Common stock issued in acquisitions	$ 185,598
Tri Valley Bank and United American Bank
Summary of assets acquired and liabilities assumed through acquisitions:
Common stock issued in acquisitions		$ 78,005

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1) Summary of Significant Accounting Policies Description of Business and Basis of Presentation Heritage Commerce Corp (“HCC”) operates as a registered bank holding company for its wholly-owned subsidiary Heritage Bank of Commerce (“HBC” or the “Bank”), collectively referred to as the “Company”. HBC was incorporated on November 23, 1993 and commenced operations on June 8, 1994. HBC is a California state chartered bank which offers a full range of commercial and personal banking services to residents and the business/professional community in Santa Clara, Alameda, and Contra Costa counties of California. CSNK Working Capital Finance Corp. a California corporation, dba Bay View Funding (“Bay View Funding”) is a wholly owned subsidiary of HBC. Bay View Funding’s primary business operation is purchasing and collecting factored receivables. Factored receivables are receivables that have been transferred by the originating organization and typically have not been subject to previous collection efforts. In a factoring transaction Bay View Funding directly purchases the receivables generated by its clients at a discount to their face value. The transactions are structured to provide the clients with immediate working capital when there is a mismatch between payments to the client for a good and service and the payment of operating costs incurred to provide such good or service. The Company acquired Tri-Valley Bank (“Tri-Valley”) on April 6, 2018. Tri-Valley was merged with HBC, with HBC as the surviving bank. Tri-Valley’s results of operations have been included in the Company’s results of operations beginning April 7, 2018. The Company acquired United American Bank (“United American”) on May 4, 2018. United American was merged with HBC, with HBC as the surviving bank. United American’s results of operations have been included in the Company’s results of operations beginning May 5, 2018. The Company acquired Presidio Bank (“Presidio”) on October 11, 2019. Presidio was merged with HBC, with HBC as the surviving bank. Presidio’s results of operations have been included in the Company’s results of operations beginning October 12, 2019. The consolidated financial statements are prepared in accordance with accounting policies generally accepted in the United States of America and general practices in the banking industry. The financial statements include the accounts of the Company. All inter-company accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, amounts held at the Federal Reserve Bank, and Federal funds sold. The Company is required to maintain reserves against certain of the deposit accounts with the Federal Reserve Bank. Federal funds are generally sold and purchased for one‑day periods. Cash Flows Net cash flows are reported for customer loan and deposit transactions, notes payable, repurchase agreements and other short‑term borrowings. Securities The Company classifies its securities as either available-for-sale or held-to-maturity at the time of purchase. Debt securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities not classified as held-to-maturity are classified as available-for-sale. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of taxes. A decline in the fair value of any available-for-sale or held-to-maturity security below amortized cost that is deemed other than temporary results in a charge to earnings and the corresponding establishment of a new cost basis for the security. In estimating other-than-temporary losses, management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the fair value decline was affected by macroeconomic conditions, and (4) whether the Company has the intention to sell the security or more likely than not will be required to sell the security before any anticipated recovery in fair value. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts are amortized, or accreted, over the life of the related security as an adjustment to income using a method that approximates the interest method. Realized gains and losses are recorded on the trade date and determined using the specific identification method for the cost of securities sold. Loan Sales and Servicing The Company holds for sale the conditionally guaranteed portion of certain loans guaranteed by the Small Business Administration or the U.S. Department of Agriculture (collectively referred to as “SBA loans”). These loans are carried at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Gains or losses on SBA loans held-for-sale are recognized upon completion of the sale, based on the difference between the selling price and the carrying value of the related loan sold. SBA loans are sold with servicing retained. Servicing assets recognized separately upon the sale of SBA loans consist of servicing rights and, for loans sold prior to 2009, interest‑only strip receivables (“I/O strips”). The Company accounts for the sale and servicing of SBA loans based on the financial and servicing assets it controls and liabilities it has incurred, reversing recognition of financial assets when control has been surrendered, and reversing recognition of liabilities when extinguished. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sale of loans. Servicing rights are amortized in proportion to and over the period of net servicing income and are assessed for impairment on an ongoing basis. Impairment is determined by stratifying the servicing rights based on interest rates and terms. Any servicing assets in excess of the contractually specified servicing fees are reclassified at fair value as an I/O strip receivable and treated like an available for sale security. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market‑based assumptions. Impairment is recognized through a valuation allowance. The servicing rights, net of any required valuation allowance, and I/O strip receivable are included in other assets on the consolidated balance sheets. Servicing income, net of amortization of servicing rights, is recognized as noninterest income. The initial fair value of I/O strip receivables is amortized against interest income on loans. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the principal amount outstanding, net of deferred loan origination fees and costs on originated loans, or unamortized premiums or discounts on purchased or acquired loans, and an allowance for loan losses. Interest on loans is accrued on the unpaid principal balance and is credited to income using the effective yield interest method. Interest on purchased or acquired loans and the accretion (amortization) of the related purchase discount (premium) is also credited to income using the effective yield interest method. A loan portfolio segment is defined as the level at which the Company uses a systematic methodology to determine the allowance for loan losses. A loan portfolio class is defined as a group of loans having similar risk characteristics and methods for monitoring and assessing risk. For all loan classes, when a loan is classified as nonaccrual, the accrual of interest is discontinued, any accrued and unpaid interest is reversed, and the amortization of deferred loan fees and costs is discontinued. For all loan classes, loans are classified as nonaccrual when the payment of principal or interest is 90 days past due, unless the loan is well secured and in the process of collection. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. In certain circumstances, loans that are under 90 days past due may also be classified as nonaccrual. Any interest or principal payments received on nonaccrual loans are applied toward reduction of principal. Nonaccrual loans generally are not returned to performing status until the obligation is brought current, the loan has performed in accordance with the contract terms for a reasonable period of time, and the ultimate collectability of the contractual principal and interest is no longer in doubt. Non‑refundable loan fees and direct origination costs are deferred and recognized over the expected lives of the related loans using the effective yield interest method. Acquired Loans Loans acquired through purchase or through a business combination are recorded at their fair value at the acquisition date. Credit discounts or premiums are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. Should the Company's allowance for loan losses methodology indicate that the credit discount associated with acquired, non-purchased credit impaired loans, is no longer sufficient to cover probable losses inherent in those loans, the Company will establish an allowance for those loans through a charge to provision for loan losses. Acquired loans are evaluated upon acquisition for evidence of deterioration in credit quality since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. Such loans are classified as purchased credit impaired loans ("PCI loans"), while all other acquired loans are classified as non-PCI loans. The Company has elected to account for PCI loans on an individual loan level. The Company estimates the amount and timing of expected cash flows for each loan. The expected cash flow in excess of the loan's carrying value, which is fair value on the date of acquisition, is referred to as the accretable yield, and is recorded as interest income over the remaining expected life of the loan. The excess of the loan's contractual principal and interest over expected cash flows is referred to as the non-accretable difference, and is not recorded in the Company's Consolidated Financial Statements. Quarterly, management performs an evaluation of expected future cash flows for PCI loans. If current expectations of future cash flows are less than management's previous expectations, other than due to decreases in interest rates and prepayment assumptions, an allowance for loan losses is recorded with a charge to current period earnings through provision for loan losses. If there has been a probable and significant increase in expected future cash flows over that which was previously expected, the Company would first reduce any previously established allowance for loan and lease losses, and then record an adjustment to interest income through a prospective increase in the accretable yield. There were no PCI loans at December 31, 2019 and December 31, 2018. Allowance for Loan Losses The allowance for loan losses is an estimate of probable incurred losses in the loan portfolio. Loans are charged‑off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance for loan losses. Management’s methodology for estimating the allowance balance consists of several key elements, which include specific allowances on individual impaired loans and the formula driven allowances on pools of loans with similar risk characteristics. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. Specific allowances are established for impaired loans. Management considers a loan to be impaired when it is probable that the Company will be unable to collect all amounts due according to the original contractual terms of the loan agreement, including scheduled interest payments. Loans for which the terms have been modified with a concession granted, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. When a loan is considered to be impaired, the amount of impairment is measured based on the fair value of the collateral, less costs to sell, if the loan is collateral dependent, or on the present value of expected future cash flows or values that are observable in the secondary market if the loan is not collateral dependent. The amount of any impairment will be charged off against the allowance for loan losses if the amount is a confirmed loss or, alternatively, a specific allocation within the allowance will be established. Loans that are considered impaired are specifically excluded from the formula portion of the allowance for loan losses analysis. The formula driven allowance on pools of loans covers all loans that are not impaired and is based on historical losses of each loan segment adjusted for current factors. In calculating the historical component of our allowance, we aggregate our loans into one of three loan segments: Commercial, Real Estate and Consumer. Each segment of loans in the portfolio possess varying degrees of risk, based on, among other things, the type of loan being made, the purpose of the loan, the type of collateral securing the loan, and the sensitivity the borrower has to changes in certain external factors such as economic conditions. The following provides a summary of the risks associated with various segments of the Company’s loan portfolio, which are factors management regularly considers when evaluating the adequacy of the allowance:  Commercial loans consist primarily of commercial and industrial (“C&I”) loans (business lines of credit), and other commercial purpose loans. Repayment of commercial and industrial loans is generally provided from the cash flows of the related business to which the loan was made. Adverse changes in economic conditions may result in a decline in business activity, which may impact a borrower’s ability to continue to make scheduled payments. The factored receivables at Bay View Funding are included in the Company’s commercial loan portfolio; however, they are evaluated for risk primarily based on the agings of the receivables. Faster turning receivables imply less risk and therefore warrant a lower associated allowance. Should the overall aging for the portfolio increase, this structure will by formula increase the allowance to reflect the increasing risk. Should the portfolio turn more quickly, it would reduce the associated allowance to reflect the reducing risk.  Real estate loans consist primarily of loans secured by commercial real estate (“CRE”) and residential real estate. Also included in this segment are land and construction loans and home equity lines of credit secured by real estate. As the majority of this segment is comprised of commercial real estate loans, risks associated with this segment lay primarily within these loan types. Adverse economic conditions may result in a decline in business activity and increased vacancy rates for commercial properties. These factors, in conjunction with a decline in real estate prices, may expose the Company to the potential for losses if a borrower cannot continue to service the loan with operating revenues, and the value of the property has declined to a level such that it no longer fully covers the Company’s recorded investment in the loan.  Consumer loans consist primarily of a large number of small loans and lines of credit. The majority of installment loans are made for consumer and business purchases. Weakened economic conditions may result in an increased level of delinquencies within this segment, as economic pressures may impact the capacity of such borrowers to repay their obligations. As a result of the matters mentioned above, changes in the financial condition of individual borrowers, economic conditions, historical loss experience and the condition of the various markets in which collateral may be sold may all affect the required level of the allowance for loan losses and the associated provision for loan losses. The estimated loss factors for pools of loans that are not impaired are based on determining the probability of default and loss given default for loans within each segment of the portfolio, adjusted for significant factors that, in management’s judgment, affect collectibility as of the evaluation date. The Company’s historical delinquency experience and loss experience are utilized to determine the probability of default and loss given default for segments of the portfolio where the Company has experienced losses since the first quarter of 2009. For segments of the portfolio where the Company has no significant prior loss experience, the Company uses quantifiable observable industry data to determine the probability of default and loss given default. Risk factors impacting loans in each of the portfolio segments include broad deterioration of property values, reduced consumer and business spending as a result of continued high unemployment and reduced credit availability and lack of confidence in a sustainable recovery. The historical loss experience is adjusted for management’s estimate of the impact of other factors based on the risks present for each portfolio segment. These other factors include consideration of the following: the overall level of concentrations and trends of classified loans; loan concentrations within a portfolio segment or division of a portfolio segment; identification of certain loan types with higher risk than other loans; existing internal risk factors; and management’s evaluation of the impact of local and national economic conditions on each of our loan types. Loan Commitments and Related Financial Instruments Financial instruments include off‑balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded. Federal Home Loan Bank and Federal Reserve Bank Stock As a member of the Federal Home Loan Bank (“FHLB”) system, the Bank is required to own common stock in the FHLB based on the Bank’s level of borrowings and outstanding FHLB advances. FHLB stock is carried at cost and classified as a restricted security. Both cash and stock dividends from the FHLB are reported as income. As a member of the Federal Reserve Bank (“FRB”) of San Francisco, the Bank is required to own stock in the FRB of San Francisco based on a specified ratio relative to our capital. FRB stock is carried at cost and may be sold back to the FRB at its carrying value. Cash dividends received from the FRB are reported as income. Company-Owned Life Insurance and Split‑Dollar Life Insurance Benefit Plan The Company has purchased life insurance policies on certain directors and officers. Company-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for charges or other amounts due that are probable at settlement. The purchased insurance is subject to split‑dollar insurance agreements with the insured participants, which continues after the participant’s employment and retirement. Accounting guidance requires that a liability be recorded primarily over the participant’s service period when a split-dollar life insurance agreement continues after a participant’s employment or retirement. The required accrued liability is based on either the post-employment benefit cost for the continuing life insurance or the future death benefit depending on the contractual terms of the underlying agreement. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are computed on the straight‑line basis over the lesser of the respective lease terms or estimated useful lives. The Company owns one building which is being depreciated over 40 years. Furniture, equipment, and leasehold improvements are depreciated over estimated useful lives generally ranging from five to fifteen years. The Company evaluates the recoverability of long‑lived assets on an ongoing basis. Business Combinations The Company accounts for acquisitions of businesses using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their estimated fair values at the date of acquisition. Management utilizes various valuation techniques including discounted cash flow analyses to determine these fair values. Any excess of the purchase price over amounts allocated to the acquired assets, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. Goodwill and Other Intangible Assets Goodwill resulted from the acquisition of Presidio on October 11, 2019, Tri-Valley on April 6, 2018 and United American on May 4, 2018, and from acquisitions in prior years. Goodwill represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment is recognized in the period identified. Other intangible assets consist of a core deposit intangible assets from the Focus Business Bank (“Focus”) acquisition in August 2015, the Tri-Valley acquisition in April 2018, the United American acquisition in May 2018, and the Presidio merger in October 2019, and below market value lease intangible assets from the Tri-Valley and United American acquisitions, and an above market lease liability from the Presidio merger. In addition, a customer relationship and brokered relationship intangible assets arising from the Bay View Funding acquisition in November 2014 are included in other intangible assets. They are initially measured at fair value and then are amortized over their estimated useful lives. The core deposits intangible assets from the acquisitions are being amortized on an accelerated method over ten years. The below market value lease intangible assets are being amortized on the straight line method over three years for United American and eleven years for Tri-Valley. The above market lease adjustment is being amortized on the straight line method over 60 months for Presidio. The customer relationship and brokered relationship intangible assets from the Bay View Funding acquisition are being amortized over ten years. Foreclosed Assets Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through operations. Operating costs after acquisition are expensed. Gains and losses on disposition are included in noninterest expense. There were no foreclosed assets at December 31, 2019 and 2018. Retirement Plans Expenses for the Company’s non‑qualified, unfunded defined benefits plan consists of service and interest cost and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service. Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company’s accounting policy for legal costs related to loss contingencies is to accrue for the probable fees that can be reasonably estimated. The Company’s accounting policy for uncertain recoveries is to recognize the anticipated recovery when realization is deemed probable. Income Taxes The Company files consolidated Federal and combined and separate state income tax returns. Income tax expense is the total of the current year income tax payable or refunded, the change in deferred tax assets and liabilities, and low income housing investment losses, net of tax benefits received. Some items of income and expense are recognized in different years for tax purposes when applying generally accepted accounting principles, leading to timing differences between the Company’s actual tax liability and the amount accrued for this liability based on book income. These temporary differences comprise the “deferred” portion of the Company’s tax expense or benefit, which is accumulated on the Company’s books as a deferred tax asset or deferred tax liability until such time as they reverse. Realization of the Company’s deferred tax assets is primarily dependent upon the Company generating sufficient taxable income to obtain benefit from the reversal of net deductible temporary differences and utilization of tax credit carryforwards for Federal and California state income tax purposes. The amount of deferred tax assets considered realizable is subject to adjustment in future periods based on estimates of future taxable income. Under generally accepted accounting principles, a valuation allowance is required to be recognized if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, including forecasts of future income, cumulative losses, applicable tax planning strategies, and assessments of current and future economic and business conditions. In March 2016, the FASB issued new guidance intended to simplify several areas of accounting for share-based compensation programs, including the income tax impact, classification on the statement of cash flows, and forfeitures. The Company adopted the new guidance on share-based compensation during the first quarter of 2017. All excess tax benefits and tax deficiencies (including tax benefits of dividends on share‑based payment awards) are recognized as income tax expense or benefit on the income statement. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. The adoption of this guidance resulted in a reduction to tax expense of $146,000 and $424,000 and $146,000 for the years ended December 31, 2019, 2018, and 2017 respectively. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”), was signed into law, which among other things reduces the federal corporate tax rate to 21% from 35%, effective January 1, 2018. When tax rates change, U.S. generally accepted accounting principles requires companies to remeasure certain tax-related assets and liabilities as of the date of enactment of the new legislation with the resulting tax effects accounted for as a discrete item recorded as a component of tax expense or benefit in the reporting period. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and penalties related to uncertain tax positions as income tax expense. Stock‑Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black‑Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight‑line basis over the requisite service period for the entire award. Compensation cost recognized reflects estimated forfeitures, adjusted as necessary for actual forfeitures. Comprehensive Income (Loss) Total comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that are included in comprehensive income (loss) but are excluded from net income (loss) because they have been recorded directly in equity, net of tax, under the provisions of certain accounting guidance. The Company’s sources of other comprehensive income (loss) are unrealized gains and losses on securities available‑for‑sale, and I/O strips, which are treated like available‑for‑sale securities, and the liabilities related to the Company’s defined benefit pension plan and the split‑dollar life insurance benefit plan. Reclassification adjustments result from gains or losses that were realized and included in net income (loss) of the current period that also had been included in other comprehensive income as unrealized holding gains and losses. Segment Reporting HBC is a commercial bank serving customers located in Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara counties of California. Bay View Funding provides business essential working capital factoring financing to various industries throughout the United States. No customer accounts for more than 10 percent of revenue for HBC or the Company. With the previous acquisition of Bay View Funding, the Company has two reportable segments consisting of Banking and Factoring. Reclassifications Certain items in the consolidated financial statements for the years ended December 31, 2018 and 2017 were reclassified to conform to the 2019 presentation. These reclassifications did not affect previously reported net income or shareholders’ equity. Adoption of New Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)”. The pronouncement affects all entities that are party to leasing agreements. The ASU requires a lessee to recognize assets and liabilities on the balance sheet for leases. The ASU permits a lessee to elect to opt out of recognizing lease assets and lease liabilities for short-term leases with a term of twelve months or less. The Company has made this short-term lease election. Lessee’s recognition, measurement, and presentation of income, expenses and cash flows arising from a lease remain similar to current GAAP. Lessee and lessors have additional quantitative and qualitative disclosures to help users better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU No. 2016-02 is effective for fiscal years beginning after December 31, 2018, and interim periods within those fiscal years. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842) - Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU No. 2018-11 entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and lessors may

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (“AOCI”)	12 Months Ended
	Dec. 31, 2019
Accumulated Other Comprehensive Income (“AOCI”)
Accumulated Other Comprehensive Income (“AOCI”)	2) Accumulated Other Comprehensive Income (“AOCI”) The following table reflects the changes in AOCI by component for the periods indicated: Year Ended December 31, 2019 and 2018 Unamortized Unrealized Unrealized Gain on Gains (Losses) on Available- Available- for-Sale Defined for-Sale Securities Benefit Securities Reclassified Pension and I/O to Held-to- Plan Strips Maturity Items Total (Dollars in thousands) Beginning balance January 1, 2019, net of taxes $ (5,007) $ 344 $ (7,718) $ (12,381) Other comprehensive income (loss) before reclassification, net of taxes 7,075 — (4,022) 3,053 Amounts reclassified from other comprehensive income (loss), net of taxes (466) (46) 62 (450) Net current period other comprehensive income (loss), net of taxes 6,609 (46) (3,960) 2,603 Ending balance December 31, 2019, net of taxes $ 1,602 $ 298 $ (11,678) $ (9,778) Beginning balance January 1, 2018, net of taxes $ (362) $ 375 $ (9,265) $ (9,252) Other comprehensive (loss) before reclassification, net of taxes (4,458) — 1,387 (3,071) Amounts reclassified from other comprehensive income (loss), net of taxes (187) (31) 160 (58) Net current period other comprehensive income (loss), net of taxes (4,645) (31) 1,547 (3,129) Ending balance December 31, 2018, net of taxes $ (5,007) $ 344 $ (7,718) $ (12,381) Amounts Reclassified from AOCI(1) Year Ended December 31, Affected Line Item Where Details About AOCI Components 2019 2018 2017 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 661 $ 266 $ (6) Gain (loss) on sales of securities (195) (79) 3 Income tax expense 466 187 (3) Net of tax Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity 65 44 51 Interest income on taxable securities (19) (13) (22) Income tax expense 46 31 29 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation 96 65 71 Actuarial losses (184) (292) (276) (88) (227) (205) Other noninterest expense 26 67 86 Income tax benefit (62) (160) (119) Net of tax Total reclassification from AOCI for the period $ 450 $ 58 $ (93) (1) Benefit Plans ).

Securities

Securities	12 Months Ended
	Dec. 31, 2019
Securities
Securities	3) Securities The amortized cost and estimated fair value of securities at year‑end were as follows: Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 283,598 $ 934 $ (171) $ 284,361 U.S. Treasury 118,939 1,525 — 120,464 Total $ 402,537 $ 2,459 $ (171) $ 404,825 Securities held-to-maturity: Agency mortgage-backed securities $ 285,344 $ 1,206 $ (968) $ 285,582 Municipals - exempt from Federal tax 81,216 1,313 (4) 82,525 Total $ 366,560 $ 2,519 $ (972) $ 368,107 Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 311,523 $ 98 $ (8,767) $ 302,854 U.S. Treasury 147,823 930 — 148,753 U.S. Government sponsored entities 7,433 4 (1) 7,436 Total $ 466,779 $ 1,032 $ (8,768) $ 459,043 Securities held-to-maturity: Agency mortgage-backed securities $ 291,241 $ 59 $ (9,153) $ 282,147 Municipals - exempt from Federal tax 85,957 312 (2,241) 84,028 Total $ 377,198 $ 371 $ (11,394) $ 366,175 Securities with unrealized losses at year end, aggregated by investment category and length of time that individual securities have been in an unrealized loss position are as follows: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 100,816 $ (105) $ 27,534 $ (66) $ 128,350 $ (171) Total $ 100,816 $ (105) $ 27,534 $ (66) $ 128,350 $ (171) Securities held-to-maturity: Agency mortgage-backed securities $ 50,060 $ (178) $ 88,128 $ (790) $ 138,188 $ (968) Municipals - exempt from Federal tax 1,556 (4) — — 1,556 (4) Total $ 51,616 $ (182) $ 88,128 $ (790) $ 139,744 $ (972) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 3,868 $ (21) $ 281,082 $ (8,746) $ 284,950 $ (8,767) U.S. Government sponsored entities 3,974 (1) — — 3,974 (1) Total $ 7,842 $ (22) $ 281,082 $ (8,746) $ 288,924 $ (8,768) Securities held-to-maturity: Agency mortgage-backed securities $ 16,088 $ (103) $ 255,917 $ (9,050) $ 272,005 $ (9,153) Municipals - exempt from Federal tax 5,019 (27) 57,301 (2,214) 62,320 (2,241) Total $ 21,107 $ (130) $ 313,218 $ (11,264) $ 334,325 $ (11,394) There were no holdings of securities of any one issuer, other than the U.S. Government and its sponsored entities, in an amount greater than 10% of shareholders’ equity. At December 31, 2019, the Company held 463 securities (141 available-for-sale and 322 held-to-maturity), of which 86 had fair values below amortized cost. At December 31, 2019, there were $27,534,000 of agency mortgage-backed securities available-for-sale, and $88,128,000 of agency mortgage-backed securities held-to-maturity, carried with an unrealized loss for 12 months or greater. The total unrealized loss for securities 12 months or greater was $856,000 at December 31, 2019. The unrealized losses were due to higher interest rates. The issuers are of high credit quality and all principal amounts are expected to be paid when securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline. The Company does not believe that it is more likely than not that the Company will be required to sell a security in an unrealized loss position prior to recovery in value. The Company does not consider these securities to be other-than-temporarily impaired at December 31, 2019. The proceeds from sales of securities and the resulting gains and losses are listed below: 2019 2018 2017 (Dollars in thousands) Proceeds $ 167,551 $ 94,291 $ 6,536 Gross gains 1,094 1,243 — Gross losses (433) (977) (6) The amortized cost and fair value of debt securities as of December 31, 2019, by contractual maturity, are shown below. The expected maturities will differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately. Available-for-sale Amortized Estimated Cost Fair Value (Dollars in thousands) Due after 3 months through one year $ 54,649 55,085 Due after one through five years 64,290 65,379 Agency mortgage-backed securities 283,598 284,361 Total $ 402,537 $ 404,825 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due 3 months or less $ 125 125 Due after 3 months through one year 1,449 1,457 Due after one through five years 5,206 5,358 Due after five through ten years 31,698 32,279 Due after ten years 42,738 43,306 Agency mortgage-backed securities 285,344 285,582 Total $ 366,560 $ 368,107 Securities with amortized cost of $32,773,000 and $36,229,000 as of December 31, 2019 and 2018 were pledged to secure public deposits and for other purposes as required or permitted by law or contract.

Loans

Loans	12 Months Ended
	Dec. 31, 2019
Loans
Loans	4) Loans Loans at year‑end were as follows: December 31, December 31, 2019 2018 (Dollars in thousands) Loans held-for-investment: Commercial $ 631,547 $ 597,763 Real estate: CRE 1,510,592 994,067 Land and construction 150,634 122,358 Home equity 175,252 109,112 Residential mortgages 46,256 50,979 Consumer 19,882 12,453 Loans 2,534,163 1,886,732 Deferred loan fees, net (319) (327) Loans, net of deferred fees 2,533,844 1,886,405 Allowance for loan losses (23,285) (27,848) Loans, net $ 2,510,559 $ 1,858,557 Changes in the allowance for loan losses were as follows: ` Year Ended December 31, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 17,061 $ 10,671 $ 116 $ 27,848 Charge-offs (6,609) — (14) (6,623) Recoveries 1,045 169 — 1,214 Net (charge-offs) recoveries (5,564) 169 (14) (5,409) Provision (credit) for loan losses (1,044) 1,910 (20) 846 End of period balance $ 10,453 $ 12,750 $ 82 $ 23,285 Year Ended December 31, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,608 $ 8,950 $ 100 $ 19,658 Charge-offs (2,002) — (24) (2,026) Recoveries 2,645 150 — 2,795 Net (charge-offs) recoveries 643 150 (24) 769 Provision for loan losses 5,810 1,571 40 7,421 End of period balance $ 17,061 $ 10,671 $ 116 $ 27,848 Year Ended December 31, 2017 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,656 $ 8,327 $ 106 $ 19,089 Charge-offs (2,239) — — (2,239) Recoveries 1,585 1,124 — 2,709 Net (charge-offs) recoveries (654) 1,124 — 470 Provision (credit) for loan losses 606 (501) (6) 99 End of period balance $ 10,608 $ 8,950 $ 100 $ 19,658 The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment, based on the impairment method as follows at year‑end: December 31, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,835 $ — $ — $ 1,835 Collectively evaluated for impairment 8,618 12,750 82 21,450 Total allowance balance $ 10,453 $ 12,750 $ 82 $ 23,285 Loans: Individually evaluated for impairment $ 4,810 $ 5,454 $ — $ 10,264 Collectively evaluated for impairment 626,737 1,877,280 19,882 2,523,899 Total loan balance $ 631,547 $ 1,882,734 $ 19,882 $ 2,534,163 December 31, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 6,944 $ — $ — $ 6,944 Collectively evaluated for impairment 10,117 10,671 116 20,904 Total allowance balance $ 17,061 $ 10,671 $ 116 $ 27,848 Loans: Individually evaluated for impairment $ 9,495 $ 5,645 $ — $ 15,140 Collectively evaluated for impairment 588,268 1,270,871 12,453 1,871,592 Total loan balance $ 597,763 $ 1,276,516 $ 12,453 $ 1,886,732 The following table presents loans held‑for‑investment individually evaluated for impairment by class of loans as of December 31, 2019 and December 31, 2018. The recorded investment included in the following table represents loan principal net of any partial charge‑offs recognized on the loans. The unpaid principal balance represents the recorded balance prior to any partial charge‑offs. December 31, 2019 December 31, 2018 Allowance Allowance Unpaid for Loan Unpaid for Loan Principal Recorded Losses Principal Recorded Losses Balance Investment Allocated Balance Investment Allocated (Dollars in thousands) With no related allowance recorded: Commercial $ 2,113 $ 2,113 $ — $ 1,849 $ 1,849 $ — Real estate: CRE 5,094 5,094 — 5,094 5,094 — Home Equity 360 360 — 551 551 — Total with no related allowance recorded 7,567 7,567 — 7,494 7,494 — With an allowance recorded: Commercial 2,697 2,697 1,835 7,646 7,646 6,944 Total with an allowance recorded 2,697 2,697 1,835 7,646 7,646 6,944 Total $ 10,264 $ 10,264 $ 1,835 $ 15,140 $ 15,140 $ 6,944 The following table presents interest recognized and cash‑basis interest earned on impaired loans for the periods indicated: Year Ended December 31, 2019 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 8,048 $ 6,433 $ — $ 440 $ — $ 14,921 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest recognized $ — $ — $ — $ — $ — $ — Year Ended December 31, 2018 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 10,744 $ 3,507 $ 24 $ 487 $ — $ 14,762 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest recognized $ — $ — $ — $ — $ — $ — Nonperforming loans include both smaller dollar balance homogenous loans that are collectively evaluated for impairment and individually classified loans. Nonperforming loans were as follows at year‑end: 2019 2018 (Dollars in thousands) Nonaccrual loans - held-for-investment $ 8,675 $ 13,699 Restructured and loans over 90 days past due and still accruing 1,153 1,188 Total nonperforming loans 9,828 14,887 Other restructured loans 436 253 Total impaired loans $ 10,264 $ 15,140 The following table presents the nonperforming loans by class at year‑end: December 31, 2019 December 31, 2018 Restructured Restructured and Loans and Loans over 90 Days over 90 Days Past Due Past Due and Still and Still Nonaccrual Accruing Total Nonaccrual Accruing Total (Dollars in thousands) Commercial $ 3,444 $ 1,153 $ 4,597 $ 8,279 $ 963 $ 9,242 Real estate: CRE 5,094 — 5,094 5,094 — 5,094 Home equity 137 — 137 326 225 551 Total $ 8,675 $ 1,153 $ 9,828 $ 13,699 $ 1,188 $ 14,887 The following table presents the aging of past due loans at year-end by class of loans: December 31, 2019 30 - 59 60 - 89 90 Days or Days Days Greater Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (Dollars in thousands) Commercial $ 4,770 $ 2,097 $ 3,217 $ 10,084 $ 621,463 $ 631,547 Real estate: CRE — — 5,094 5,094 1,505,498 1,510,592 Land and construction — — — — 150,634 150,634 Home equity — 137 — 137 175,115 175,252 Residential mortgages — — — — 46,256 46,256 Consumer — — — — 19,882 19,882 Total $ 4,770 $ 2,234 $ 8,311 $ 15,315 $ 2,518,848 $ 2,534,163 December 31, 2018 30 - 59 60 - 89 90 Days or Days Days Greater Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (Dollars in thousands) Commercial $ 5,698 $ 1,916 $ 1,258 $ 8,872 $ 588,891 $ 597,763 Real estate: CRE — — — — 994,067 994,067 Land and construction — — — — 122,358 122,358 Home equity — — — — 109,112 109,112 Residential mortgages — — — — 50,979 50,979 Consumer 1 — — 1 12,452 12,453 Total $ 5,699 $ 1,916 $ 1,258 $ 8,873 $ 1,877,859 $ 1,886,732 Past due loans 30 days or greater totaled $ 15,315,000 and $8,873,000 at December 31, 2019 and December 31, 2018, respectively, of which $7,413,000 and $430,000 were on nonaccrual. At December 31, 2019, there were also $1,262,000 loans less than 30 days past due included in nonaccrual loans held-for-investment. At December 31, 2018, there were also $13,269,000 loans less than 30 days past due included in nonaccrual loans held-for-investment. Management’s classification of a loan as “nonaccrual” is an indication that there is reasonable doubt as to the full recovery of principal or interest on the loan. At that point, the Company stops accruing interest income, and reverses any uncollected interest that had been accrued as income. The Company begins recognizing interest income only as cash interest payments are received and it has been determined the collection of all outstanding principal is not in doubt. The loans may or may not be collateralized, and collection efforts are pursued. Credit Quality Indicators Concentrations of credit risk arise when a number of clients are engaged in similar business activities, or activities in the same geographic region, or have similar features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic conditions. The Company’s loan portfolio is concentrated in commercial (primarily manufacturing, wholesale, and service) and real estate lending, with the balance in consumer loans. While no specific industry concentration is considered significant, the Company’s lending operations are located in the Company’s market areas that are dependent on the technology and real estate industries and their supporting companies. Thus, the Company’s borrowers could be adversely impacted by a continued downturn in these sectors of the economy which could reduce the demand for loans and adversely impact the borrowers’ ability to repay their loans. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information; historical payment experience; credit documentation; public information; and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis. Nonclassified loans generally include those loans that are expected to be repaid in accordance with contractual loans terms. Classified loans are those loans that are assigned a substandard, substandard‑nonaccrual, or doubtful risk rating using the following definitions: Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well‑defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Substandard‑Nonaccrual. Loans classified as substandard‑nonaccrual are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any, and it is probable that the Company will not receive payment of the full contractual principal and interest. Loans so classified have a well‑defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. In addition, the Company no longer accrues interest on the loan because of the underlying weaknesses. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loss. Loans classified as loss are considered uncollectable. In addition, loans of so little value that their continuance as assets is not warranted are classified as loss. This classification does not necessarily mean that a loan has no recovery or salvage value; but rather, there is much doubt about whether, how much, or when the recovery will occur. Loans classified as loss are immediately charged off against the allowance for loan losses. Therefore, there is no balance to report at December 31, 2019 or 2018. The following table provides a summary of the loan portfolio by loan type and credit quality classification for the periods indicated: December 31, 2019 December 31, 2018 Nonclassified Classified Total Nonclassified Classified Total (Dollars in thousands) Commercial $ 623,768 7,779 $ 631,547 $ 584,845 $ 12,918 $ 597,763 Real estate: CRE 1,492,126 18,466 1,510,592 985,193 8,874 994,067 Land and construction 147,553 3,081 150,634 122,358 — 122,358 Home equity 171,999 3,253 175,252 107,495 1,617 109,112 Residential mortgages 46,256 — 46,256 50,979 — 50,979 Consumer 19,882 — 19,882 12,453 — 12,453 Total $ 2,501,584 $ 32,579 $ 2,534,163 $ 1,863,323 $ 23,409 $ 1,886,732 The increase in classified assets at December 31, 2019 was primarily due to classified assets acquired from Presidio. In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed in compliance with the Company’s underwriting policy. The book balance of troubled debt restructurings at December 31, 2019 was $1,039,000, which included $590,000 of nonaccrual loans and $449,000 of accruing loans. The book balance of troubled debt restructurings at December 31, 2018 was $649,000, which included $36,000 of nonaccrual loans and $613,000 of accruing loans. Approximately $20,000 and $38,000 in specific reserves were established with respect to these loans as of December 31, 2019 and December 31, 2018. As of December 31, 2019 and December 31, 2018, the Company had no additional amounts committed on any loan classified as a troubled debt restructuring. The following table presents loans by class modified as troubled debt restructurings: During the Year Ended December 31, 2019 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 3 $ 591 $ 591 Total 3 $ 591 $ 591 During the Year Ended December 31, 2018 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 2 $ 112 $ 112 Equity 1 224 224 Total 3 $ 336 $ 336 During the twelve months ended December 31, 2019, there were no troubled debt restructurings in which the amount of principal or accrued interest owed from the borrower was forgiven or which resulted in a charge-off or change to the allowance for loan losses. A loan is considered to be in payment default when it is 30 days contractually past due under the modified terms. There were no defaults on troubled debt restructurings, within twelve months following the modification, during the years ended December 31, 2019 and 2018. A loan that is a troubled debt restructuring on nonaccrual status may return to accruing status after a period of at least six months of consecutive payments in accordance with the modified terms. HBC makes loans to executive officers, directors, and their affiliates. The following table presents the loans outstanding to these related parties for the periods indicated: 2019 2018 (Dollars in thousands) Beginning of year balance $ — $ 531 Repayment on loans during the year — (531) End of year balance $ — $ —

Loan Servicing

Loan Servicing	12 Months Ended
	Dec. 31, 2019
Loan Servicing
Loan Servicing	5) Loan Servicing At December 31, 2019, 2018, and 2017, the Company serviced SBA loans sold to the secondary market of approximately $87,835,000, $104,016,000, and $139,086,000, respectively. Servicing assets represent the servicing spread generated from the sold guaranteed portions of SBA loans. The weighted average servicing rate for all loans serviced was 1.16%, 1.12%, and 1.13% at December 31, 2019, 2018, and 2017, respectively. Servicing rights are included in “accrued interest receivable and other assets” on the consolidated balance sheets. Activity for loan servicing rights follows: 2019 2018 2017 (Dollars in thousands) Beginning of year balance $ 871 $ 1,373 $ 1,854 Additions 157 200 278 Amortization (445) (702) (759) End of year balance $ 583 $ 871 $ 1,373 There was no valuation allowance for servicing rights at December 31, 2019, 2018, and 2017, because the estimated fair value of the servicing rights was greater than the carrying value. The estimated fair value of loan servicing rights was $1,295,000, $1,651,000, and $2,594,000, at December 31, 2019, 2018, and 2017, respectively. The fair value of servicing rights at December 31, 2019, was estimated using a weighted average constant prepayment rate (“CPR”) assumption of 13.50%, and a weighted average discount rate assumption of 15.90%. The fair value of servicing rights at December 31, 2018, was estimated using a weighted average CPR assumption of 10.89%, and a weighted average discount rate assumption of 16.40%. The fair value of servicing rights at December 31, 2017, was estimated using a weighted average CPR assumption of 8.13%, and a weighted average discount rate assumption of 13.86%. The weighted average discount rate and CPR assumptions used to estimate the fair value of the I/O strip receivables are the same as for the servicing rights. Management reviews the key economic assumptions used to estimate the fair value of I/O strip receivables on a quarterly basis. The fair value of the I/O strip can be adversely impacted by a significant increase in either the prepayment speed of the portfolio or the discount rate. I/O strip receivables are included in “accrued interest receivable and other assets” on the consolidated balance sheets. Activity for I/O strip receivables follows: 2019 2018 2017 (Dollars in thousands) Beginning of year balance $ 568 $ 968 $ 1,067 Unrealized loss (65) (400) (99) End of year balance $ 503 $ 568 $ 968

Premises and Equipment

Premises and Equipment	12 Months Ended
	Dec. 31, 2019
Premises and Equipment
Premises and Equipment	6) Premises and Equipment Premises and equipment at year‑end were as follows: 2019 2018 (Dollars in thousands) Building $ 3,508 $ 3,508 Land 2,900 2,900 Furniture and equipment 10,067 9,584 Leasehold improvements 7,372 5,645 23,847 21,637 Accumulated depreciation and amortization (15,597) (14,500) Premises and equipment, net $ 8,250 $ 7,137 Depreciation and amortization expense was $846,000, $753,000, and $786,000 in 2019, 2018, and 2017, respectively.

Leases

Leases	12 Months Ended
	Dec. 31, 2019
Leases
Leases	7) Leases On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (Topic 842). Under the new guidance, the Company recognizes the following for all leases, at the commencement date: (1) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (2) a right-of-use (“ROU”) asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The Company is impacted as a lessee of the offices and real estate used for operations. The Company's lease agreements include options to renew at the Company's option. No lease extensions are reasonably certain to be exercised, therefore it was not considered in the calculation of the ROU asset and lease liability. As of December 31, 2019, operating lease ROU assets, included in other assets totaled $12,173,000, and lease liabilities, included in other liabilities, totaled $13,032,000. The following table presents the quantitative information for the Company’s leases: December 31, 2019 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,490 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,519 Operating Lease - ROU assets $ 12,173 Operating Lease - Liabilities $ 13,032 Weighted Average Lease Term - Operating Leases 4.79 years Weighted Average Discount Rate - Operating Leases The following maturity analysis shows the undiscounted cash flows due on the Company’s operating lease liabilities: (Dollars in thousands) 2020 $ 3,812 2021 2,852 2022 2,578 2023 1,855 2024 1,474 Thereafter 1,618 Total undiscounted cash flows 14,189 Discount on cash flows (1,157) Total lease liability $ 13,032 The merger with Presidio resulted in the Company operating overlapping branch locations in the cities of Walnut Creek and San Mateo, California. Management has approved the consolidation of these branches in 2020 by vacating the HBC leased locations prior to the lease termination date, and moving the operations to the Presidio branch locations. The consolidation of these two branches into the Presidio locations resulted in the impairment of both leases at December 31, 2019. The lease impairment and write-off of fixed assets and tenant improvements totaled $434,000 for the Walnut Creek location, and $625,000 for the San Mateo location during the fourth quarter of 2019. In June of 2019, the Company entered in to a lease agreement for 54,910 square feet of office space in San Jose, California, commencing on February 1, 2020. The Company intends to move its Bay View Funding office during the first quarter of 2020, and move the main office of HBC during the second quarter of 2020, to this new location.

Business Combinations

Business Combinations	12 Months Ended
	Dec. 31, 2019
Business Combinations
Business Combinations	8) Business Combinations On April 6, 2018, the Company completed its acquisition of Tri-Valley for a transaction value of $32,320,000. At closing the Company issued 1,889,613 shares of the Company’s common stock with an aggregate market value of $30,725,000 on the date of closing. The number of shares issued was based on a fixed exchange ratio of 0.0489 of a share of the Company’s common stock for each outstanding share of Tri-Valley common stock. In addition, at closing the Company paid cash to the holder of a stock warrant and holders of outstanding stock options and related fees and fractional shares totaling $1,595,000. Tri-Valley’s results of operations have been included in the Company’s results of operations beginning April 7, 2018. On May 4, 2018, the Company completed its acquisition of United American for a transaction value of $56,417,000. At closing the Company issued 2,826,032 shares of the Company’s common stock with an aggregate market value of $47,280,000 on the date of closing. The number of shares issued was based on a fixed exchange ratio of 2.1644 of a share of the Company’s common stock for each outstanding share of United American common stock and each common stock equivalent underlying the United American Series D Preferred Stock and Series E Preferred Stock. The shareholders of the United American Series A Preferred Stock and Series B Preferred Stock received $1,000 cash for each share totaling $8,700,000 and $435,000, respectively. In addition, the Company paid $2,000 in cash for fractional shares, for total cash consideration of $9,137,000. United American’s results of operations have been included in the Company’s results of operations beginning May 5, 2018. On October 11, 2019, the Company completed its merger with Presidio for an aggregate transaction value of $185,598,000. Shareholders of Presidio received a fixed exchange ratio at closing of 2.47 shares of the Company’s common stock for each share of Presidio common stock. Upon closing of the transaction, the Company issued 15,684,064 shares of the Company’s common stock to Presidio shareholders and holders of restricted stock units for a total value of $178,171,000 based on the Company’s closing stock price of $11.36 on the closing date of October 11, 2019. In addition, the consideration for Presidio stock options exchanged for the Company’s stock options totaled $7,426,000 and cash-in-lieu of fractional shares totaled $1,000 on October 11, 2019. The following table summarizes the consideration paid for Presidio: (Dollars in thousands) Issuance of 15,684,064 shares of common stock to Presidio shareholders and holders of restricted stock (stock price = $11.36 on October 11, 2019) $ 178,171 Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options 7,426 Cash paid for fractional shares 1 Total consideration $ 185,598 The following table summarizes the estimated fair values of the Presidio assets acquired and liabilities assumed at the date of the merger. As As Recorded Fair Recorded by Value at Presidio Adjustments Acquisition (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 117,989 $ (1) (a) $ 117,988 Securities available-for-sale 44,647 422 (b) 45,069 Securities held-to-maturity 463 — 463 Loans 698,493 (12,529) (c) 685,964 Allowance for loan losses (7,463) 7,463 (d) — Premises and equipment, net 1,756 — 1,756 Other intangible assets — 11,147 (e) 11,147 Other assets, net 43,539 (1,378) (f) 42,161 Total assets acquired $ 899,424 $ 5,124 904,548 Liabilities assumed: Deposits $ 774,260 $ (1) (g) 774,259 Subordinated Debt 10,000 — (h) 10,000 Other borrowings 442 — 442 Other liabilities 17,916 — 17,916 Total liabilities assumed $ 802,618 $ (1) 802,617 Net assets acquired 101,931 Purchase price 185,598 Goodwill recorded in the merger $ 83,667 Explanation of certain fair value related adjustments for the Presidio merger: (a) Represents cash paid for fractional shares in the transaction. (b) Represents the fair value adjustment on investment securities available-for-sale. (c) Represents the fair value adjustment to the net book value of loans includes an interest rate mark and credit mark adjustment. (d) Represents the elimination of Presidio’s allowance for loan losses. (e) Represents intangible assets recorded to reflect the fair value of core deposits and an above market lease. The core deposit asset was recorded as an identifiable intangible asset and is amortized on an accelerated basis over the estimated average life of the deposit base. The above market lease liability will be accreted on the straight line method over 60 months. (f) Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded. (g) Represents the fair value adjustment on time deposits, which was amortized as interest expense. (h) The Company acquired $10,000,000 of subordinated debt from the Presidio transaction. The Presidio subordinated debt was redeemed on December 19, 2019. Presidio’s results of operations have been included in the Company’s results of operations beginning October 12, 2019. The following table presents pro forma financial information as if the merger had occurred on January 1, 2018, which includes the pre‑acquisition period for Presidio. The historical unaudited pro forma financial information has been adjusted to reflect supportable items that are directly attributable to the acquisition and expected to have a continuing impact on consolidated results of operations, as such, one‑time acquisition costs are not included. The unaudited pro forma financial information is provided for informational purposes only. The unaudited pro forma financial information is not necessarily, and should not be assumed to be, an indication of the results that would have been achieved had the acquisition been completed as of the dates indicated or that may be achieved in the future. The preparation of the unaudited pro forma combined consolidated financial statements and related adjustments required management to make certain assumptions and estimates. For the Year Ended UNAUDITED December 31, 2019 December 31, 2018 (Dollars in thousands, except per share amounts) Net interest income $ 163,555 $ 160,044 Provision (credit) for loan losses 870 7,694 Noninterest income 11,291 10,795 Noninterest expense 92,709 97,563 Income before income taxes 81,268 65,582 Income tax expense 23,730 17,549 Net income $ 57,538 $ 48,033 Net income per share - basic $ 0.98 $ 0.84 Net income per share - diluted $ 0.96 $ 0.83 The Company believes the mergers provide the opportunity to combine independent business banking franchises with similar philosophies and cultures into a combined $4.1 billion business bank based in San Jose, California. The pooling of the three banks’ resources and knowledge enhance the Company’s capabilities, operational efficiencies, and community outreach. The Company also believes the combined bank will be much better positioned to meet the needs of the Company’s customers, shareholders and the community. The following table summarizes the pre-tax merger-related costs for the year ended December 31, 2019 for the Presidio merger, and the pre-tax merger-related costs for the years ended December 31, 2018 and 2017 for the Tri-Valley and United American acquisitions: For the Year Ended December 31, December 31, December 31, 2019 2018 2017 (Dollars in thousands) Salaries and employee benefits $ 6,580 $ 3,569 $ — Other 4,500 5,598 671 Total merger-related costs $ 11,080 $ 9,167 $ 671 The fair value of net assets acquired includes fair value adjustments to certain receivables of which some were considered impaired and some were not considered impaired as of the acquisition date. The fair value adjustments were determined using discounted contractual cash flows, adjusted for expected losses and prepayments, where appropriate. The receivables that were not considered impaired at the acquisition date were not subject to the guidance relating to purchased credit impaired loans, which have shown evidence of credit deterioration since origination. There were no PCI loans at December 31, 2019 and December 31, 2018. Goodwill of $13,819,000 arising from the Tri-Valley acquisition, $24,270,000 from the United American acquisition and $83,667,000 from the Presidio merger is largely attributable to synergies and cost savings resulting from combining the operations of the companies. As these transactions were structured as tax-free exchanges, the goodwill will not be deductible for tax purposes. As of April 6, 2019 and May 4, 2019 the Company finalized its valuation of all assets acquired and liabilities assumed in its acquisition of Tri-Valley and United American, respectively, resulting in no material changes to acquisition accounting adjustments. Management’s preliminary valuation of the tangible and intangible assets acquired and liabilities assumed from the Presidio merger, which are based on assumptions that are subject to change, and the resulting allocation of the consideration paid for the allocation is reflected in the tables above. Prior to the end of the one-year measurement period for finalizing the consideration paid allocation, if information becomes available which would indicate adjustments are required to the allocation, such adjustments will be included in the allocation in the reporting period in which the adjustment amounts are determined. Loan valuations may be adjusted based on new information obtained by the Company in future periods that may reflect conditions or events that existed on the acquisition date. Deferred tax assets may be adjusted for purchase accounting adjustments on open areas such as loans or upon filing final “stub” period tax returns for October 11, 2019 for Presidio.

Goodwill and Other Intangible A

Goodwill and Other Intangible Assets	12 Months Ended
	Dec. 31, 2019
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets	9) Goodwill and Other Intangible Assets Goodwill Goodwill impairment exists when a reporting unit’s carrying value exceeds its fair value, which is determined through a qualitative assessment whether it is more likely than not that the fair value of equity of the reporting unit exceeds the carrying value (“Step Zero”). If the qualitative assessment indicates it is more likely than not that the fair value of equity of a reporting unit is less than book value, then a quantitative two-step impairment test is required. Step 1 includes the determination of the carrying value of the Company’s single reporting unit, including the existing goodwill and intangible assets, and estimating the fair value of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, the Company is required to perform a second step to the impairment test. Step 2 requires that the implied fair value of the reporting unit goodwill be compared to the carrying amount of that goodwill. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss shall be recognized in an amount equal to that excess. The Company completed its annual goodwill impairment analysis as of November 30, 2019 with the assistance of an independent valuation firm. The goodwill related to the acquisition of Bay View Funding was tested separately for impairment under this analysis. No events or circumstances since the November 30, 2019 annual impairment test were noted that would indicate it was more likely than not a goodwill impairment exists, for either the Company’s banking segment or the factoring segment. The following table summarizes the carrying amount of goodwill by segment at December 31, 2019 and 2018: December 31, 2019 2018 (Dollars in thousands) Banking $ 154,376 $ 70,709 Factoring 13,044 13,044 Total Goodwill $ 167,420 $ 83,753 Other Intangible Assets Other intangible assets acquired in the merger with Presidio in October 2019 included a core deposit intangible asset of $11,247,000, amortized on an accelerated method over its estimated useful life of 10 years, and an above market value lease liability of ($100,000), amortized over its estimated useful life of 60 months. Accumulated amortization of the core deposit intangible and above market lease was $524,000 at December 31, 2019. Other intangible assets acquired in the acquisition of United American in May 2018 included a core deposit intangible asset of $5,723,000, amortized on an accelerated method over its estimated useful life of 10 years, and a below market value lease intangible asset of $660,000, amortized over its estimated useful life of 3 years. Accumulated amortization of the core deposit intangible and below market lease was $1,788,000, and $756,000 at December 31, 2019 and December 31, 2018, respectively. Other intangible assets acquired in the acquisition of Tri-Valley in April 2018 include a core deposit intangible asset of $1,768,000, amortized on an accelerated method over its estimated useful life of 10 years, and a below market value lease intangible asset of $210,000, amortized over its estimated useful life of 11 years. Accumulated amortization of the core deposit intangible and below market lease was $480,000 and $222,000 at December 31, 2019 and December 31, 2018, respectively. The core deposit intangible asset acquired in the acquisition of Focus in August 2015 was $6,285,000. This asset is amortized on an accelerated method over its estimated useful life of 10 years. Accumulated amortization of this intangible asset was $ 3,504,000 and $2,770,000 at December 31, 2019 and December 31, 2018, respectively. Other intangible assets acquired in the acquisition of Bay View Funding in November 2014 included a below market value lease intangible assets of $109,000, a non-compete agreement intangible asset of $250,000, and a customer relationship and brokered relationship intangible assets of $1,900,000, amortized over the 10 year estimated useful lives. Accumulated amortization of these intangible assets was $981,000 and $791,000 at December 31, 2019 and December 31, 2018, respectively. The below market lease and non-compete agreement intangible assets were fully amortized at December 31, 2017. Estimated amortization expense for each of the next five years and thereafter is as follows: United United Bay View Funding Presidio Presidio American American Tri-Valley Tri-Valley Focus Customer & Core Above Core Below Core Below Core Brokered Total Deposit Market Deposit Market Deposit Market Deposit Relationship Amortization Year Intangible Lease Intangible Lease Intangible Lease Intangible Intangible Expense (Dollars in thousands) 2020 $ 1,719 (20) $ 665 $ 235 $ 208 $ 18 $ 716 $ 190 $ 3,731 2021 1,447 (20) 602 — 184 18 596 190 3,017 2022 1,225 (20) 553 — 167 18 502 190 2,635 2023 1,118 (20) 521 — 158 18 420 190 2,405 2024 1,026 (14) 499 — 152 18 347 159 2,187 Thereafter 4,181 — 1,520 — 451 88 200 — 6,440 $ 10,716 $ (94) $ 4,360 $ 235 $ 1,320 $ 178 $ 2,781 $ 919 $ 20,415 Impairment testing of the intangible assets is performed at the individual asset level. Impairment exists if the carrying amount of the asset is not recoverable and exceeds its fair value at the date of the impairment test. For intangible assets, estimates of expected future cash flows (cash inflows less cash outflows) that are directly associated with an intangible asset are used to determine the fair value of that asset. Management makes certain estimates and assumptions in determining the expected future cash flows from core deposit and customer relationship intangibles including account attrition, expected lives, discount rates, interest rates, servicing costs and other factors. Significant changes in these estimates and assumptions could adversely impact the valuation of these intangible assets. If an impairment loss exists, the carrying amount of the intangible asset is adjusted to a new cost basis. The new cost basis is then amortized over the remaining useful life of the asset. Based on its assessment, management concluded that there was no impairment of intangible assets at December 31, 2019 and December 31, 2018.

Deposits

Deposits	12 Months Ended
	Dec. 31, 2019
Deposits.
Deposits	10) Deposits The following table presents the scheduled maturities of all time deposits for the next five years: (Dollars in thousands) 2020 $ 156,141 2021 9,658 2022 2,115 2023 54 2024 66 Total $ 168,034 Time deposits of $250,000 and over were $99,882,000 and $86,114,000 at December 31, 2019 and 2018, respectively. At December 31, 2019, time deposits within Certificate of Deposit Account Registry Service (“CDARS”) deposits totaled $28,847,000, which were comprised of money market deposits of $2,171,000, and interest-bearing demand deposits of $12,885,000, (which have no scheduled maturity date, and therefore, are excluded from the table above), and time deposits of $13,791,000, (which are included in the table above). At December 31, 2018, CDARS deposits totaled $14,898,000, which comprised money market deposits of $3,366,000, and interest-bearing demand deposits of $8,747,000, (which have no scheduled maturity date, and therefore, are excluded from the table above), and time deposits of $2,785,000. The CDARS program allows customers with deposits in excess of FDIC-insured limits to obtain full coverage on time deposits through a network of banks within the CDARS program. Deposits gathered through these programs are not considered brokered deposits under current regulatory reporting guidelines. Deposits from executive officers, directors, and their affiliates were $12,636,000 and $21,752,000 at December 31, 2019 and 2018, respectively.

Borrowing Arrangements

Borrowing Arrangements	12 Months Ended
	Dec. 31, 2019
Borrowing Arrangements
Borrowing Arrangements	11) Borrowing Arrangements Federal Home Loan Bank Borrowings, Federal Reserve Bank Borrowings, and Available Lines of Credit HBC maintains a collateralized line of credit with the FHLB of San Francisco. Under this line, the Company can borrow from the FHLB on a short-term (typically overnight) or long-term (over one year) basis. As of December 31, 2019, and December 31, 2018, HBC had no overnight borrowings from the FHLB. HBC had $272,879,000 of loans and no securities pledged to the FHLB as collateral on a line of credit of $228,103,000 at December 31, 2019. HBC had $228,152,000 of loans and no securities pledged to the FHLB as collateral on a line of credit of $178,560,000 at December 31, 2018. HBC can also borrow from the FRB’s discount window. HBC had approximately $726,709,000 of loans pledged to the FRB as collateral on an available line of credit of approximately $408,401,000 at December 31, 2019, none of which was outstanding. HBC had approximately $739,830,000 of loans pledged to the FRB as collateral on an available line of credit of approximately $418,399,000 at December 31, 2018, none of which was outstanding. At December 31, 2019, HBC had Federal funds purchase arrangements available of $80,000,000. There were no Federal funds purchased outstanding at December 31, 2019 and 2018. HCC has a $5,000,000 line of credit with a correspondent bank, of which none was outstanding at December 31, 2019 and 2018. HBC may also utilize securities sold under repurchase agreements to manage our liquidity position. There were no securities sold under agreements to repurchase at December 31, 2019, and 2018. Subordinated Debt On May 26, 2017, the Company completed an underwritten public offering of $40,000,000 aggregate principal amount of its fixed-to-floating rate subordinated notes (“Subordinated Debt”) due June 1, 2027. The Subordinated Debt initially bears a fixed interest rate of 5.25% per year. Commencing on June 1, 2022, the interest rate on the Subordinated Debt resets quarterly to the three-month LIBOR rate plus a spread of 336.5 basis points, payable quarterly in arrears. Interest on the Subordinated Debt is payable semi-annually on June 1st and December 1st of each year through June 1, 2022 and quarterly thereafter on March 1st, June 1st, September 1st and December 1st of each year through the maturity date or early redemption date. The Company, at its option, may redeem the Subordinated Debt, in whole or in part, on any interest payment date on or after June 1, 2022 without a premium. Unamortized debt issuance cost totaled $446,000 at December 31, 2019. It is understood that after December 31, 2021, the administrator in the United Kingdom with authority over the agency that currently publishes LIBOR (commonly known as the Intercontinental Exchange “ICE”), will no longer support that published index as a generally representative rate. Due to this, standardized contract language addressing the replacement of LIBOR has been published by the Alternative Rate Reference Committee (commonly known as “ARRC”) convened by, among others, the Federal Reserve Board. It is also understood that ARRC generally supports using the Secured Overnight Financing Rate (“SOFR”) as a replacement index (with an adjustment mechanism), although one version of the ARRC’s proposed language does not require implementation of SOFR immediately. With respect to new financings tied to LIBOR going forward, it is expected to consider the implementation of the ARRC’s proposed language (with variations as appropriate) into the documentation thereof. With respect to existing financings tied to LIBOR, the existing terms of the documentation thereof will be the primary driver of how all issues related to LIBOR are dealt with, which necessarily means each will be evaluated and responded to on a case-by-case basis as necessary. Efforts are underway to coordinate with the counter-parties under such financings to address the issues, subject to the terms of the existing documentation and any mutually agreeable amendments thereto. The Company acquired $10,000,000 of subordinated debt from the Presidio transaction with an interest rate of 8%, which was redeemed on December 19, 2019. As a result of the redemption of the Presidio subordinated debt, the Company paid a pre-payment penalty of $300,000 during the fourth quarter of 2019.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2019
Income Taxes
Income Taxes	12) Income Taxes On December 22, 2017, the Tax Act was signed into law, which among other things reduces the federal corporate tax rate to 21% from 35%, effective January 1, 2018. The enactment of the Tax Act caused our net deferred tax assets to be revalued at the new lower tax rate with resulting tax effects accounted for in the fourth quarter of 2017. The Company performed an analysis and determined the value of the net DTA was reduced by $7,103,000, which was recognized as a one-time, non-cash, incremental income tax expense for the fourth quarter of 2017. Also on December 22, 2017, the SEC issued Staff Accounting Bulletin (“SAB”) 118, which addresses the situations where the accounting for changes in tax laws is complete, incomplete but can be reasonably estimated, and incomplete and cannot be reasonably estimated. SAB 118 also permits a measurement period up to one year from the date of enactment to refine the provisional accounting. There were no items for which the Company was unable to make a reasonable estimate for the effects of the tax law change. The Company has completed its accounting for the effects of the Tax Act on its deferred tax assets and liabilities. Income tax expense (benefit) consisted of the following for the year ended December 31, as follows: 2019 2018 2017 (Dollars in thousands) Currently payable tax: Federal $ 7,631 $ 9,187 $ 12,948 State 4,689 5,416 4,653 Total currently payable 12,320 14,603 17,601 Deferred tax expense (benefit): Federal 2,200 (1,133) 1,193 Due to enactment of Tax Reform — — 7,103 State 1,331 (146) 574 Total deferred tax 3,531 (1,279) 8,870 Income tax expense $ 15,851 $ 13,324 $ 26,471 The effective tax rate differs from the Federal statutory rate for the years ended December 31, as follows: 2019 2018 2017 Statutory Federal income tax rate % 21.0 % 35.0 % State income taxes, net of federal tax benefit % 8.5 % 6.8 % Low income housing credits, net of investment losses % (0.8) % (0.5) % Increase in cash surrender value of life insurance % (0.5) % (1.2) % Stock option/restricted stock windfall tax benefit % (0.9) % (0.3) % Non-taxable interest income % (0.9) % (1.5) % Split-dollar term insurance % 0.1 % 0.1 % Merger cost % 0.5 % — % Due to enactment of Tax Reform — % — % 14.1 % Other, net % 0.4 % 0.1 % Effective tax rate % % % Deferred tax assets and liabilities that result from the tax effects of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes at December 31, are as follows: 2019 2018 (Dollars in thousands) Deferred tax assets: Defined postretirement benefit obligation $ 9,901 $ 7,877 Allowance for loan losses 7,231 7,697 Federal net operating loss carryforwards 3,662 5,093 Accrued expenses 2,562 1,939 Lease accounting 1,647 — Stock compensation 1,636 1,244 California net operating loss carryforwards 1,489 2,128 State income taxes 954 1,117 Premises and equipment 695 642 Split-dollar life insurance benefit plan 75 80 Nonaccrual interest 61 55 Tax credit carryforwards 57 71 Securities available-for-sale — 2,184 Other 654 716 Total deferred tax assets 30,624 30,843 Deferred tax liabilities: Intangible liabilities (1,321) (1,671) Loan fees (1,842) (1,089) Prepaid expenses (289) (554) Securities available-for-sale (772) — Lease accounting (1,647) — I/O strips (144) (163) FHLB stock (177) (174) Other (130) (103) Total deferred tax liabilities (6,322) (3,754) Net deferred tax assets $ 24,302 $ 27,089 At December 31, 2019, the Company's federal net operating loss (“NOL”) carryforwards were $17,438,000 and the Company's California net operating loss carryforwards were $17,372,000. These amounts are attributable to the Focus, Tri-Valley and United American transactions. The realization of these NOL carryforwards for Federal and State tax purposes are limited on the amount of net operating losses that can be utilized annually under the current tax law. The Company does not believe that its annual limitation on each acquisition will impact the ultimate deductibility of the NOL carry-forwards. The State tax credit carryforwards, net of Federal tax effects, were $57,328 as of December 31, 2019, which will begin to expire in 2022. Since the Company will be able to fully utilize the net operating loss carryforwards before they begin to expire in 2029, no valuation allowance is required against the deferred tax assets. Under generally accepted accounting principles, a valuation allowance is required if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, including forecasts of future income, cumulative losses, applicable tax planning strategies, and assessments of current and future economic and business conditions. As of December 31, 2019 and 2018 the Company’s recorded amount of uncertain tax positions was not considered significant for financial reporting and the Company does not expect this amount to significantly increase or decrease in the next twelve months. At December 31, 2019, and December 31, 2018, the Company had net deferred tax assets of $24,302,000 and $27,089,000, respectively. At December 31, 2019, the Company determined that a valuation allowance for deferred tax assets was not necessary. The Company and its subsidiaries are subject to U.S. Federal income tax as well as income tax of the State of California. The Company is no longer subject to examination by Federal and state taxing authorities for years before 2016, and by the State of California taxing authority for years before 2015. The following table reflects the carrying amounts of the low income housing investments included in accrued interest receivable and other assets, and the future commitments included in accrued interest payable and other liabilities for the periods indicated: December 31, December 31, 2019 2018 (Dollars in thousands) Low income housing investments $ 6,126 $ 3,172 Future commitments $ 625 $ 273 The Company expects $28,000 of the future commitments to be paid in 2020, and $597,000 in 2021 through 2025. For tax purposes, the Company recognized low income housing tax credits of $511,000 and $425,000 for the years ended December 31, 2019 and December 2018, respectively, and low income housing investment expense of $520,000 and $437,000, respectively. The Company recognizes low income housing investment expenses as a component of income tax expense.

Equity Plan

Equity Plan	12 Months Ended
	Dec. 31, 2019
Equity Plan
Equity Plan	13) Equity Plan The Company maintained an Amended and Restated 2004 Equity Plan (the “2004 Plan”) for directors, officers, and key employees. The 2004 Plan was terminated on May 23, 2013. The Company’s shareholders approved the 2013 Equity Incentive Plan (the “2013 Plan”). The equity plans provide for the grant of incentive and nonqualified stock options and restricted stock. The equity plans provide that the option price for both incentive and nonqualified stock options will be determined by the Board of Directors at no less than the fair value at the date of grant. Options granted vest on a schedule determined by the Board of Directors at the time of grant. Generally options vest over four years. All options expire no later than ten years from the date of grant. Restricted stock is subject to time vesting. In 2019, the Company granted 299,500 shares of nonqualified stock options and 134,653 shares of restricted stock subject to time vesting requirements. There were 796,957 shares available for the issuance of equity awards under the 2013 Plan as of December 31, 2019. The Presidio equity plans were assumed by the Company and the outstanding options issued under the Presidio equity plans were converted into the right to receive the Company’s shares at the exercise price pursuant to the formula defined in the merger agreement. Consideration for the assumed Presidio stock options exchanged for 1,176,757 shares of the Company’s stock options totaled $7,426,000. Stock option activity under the equity plans is as follows: Weighted Weighted Average Average Remaining Aggregate Number Exercise Contractual Intrinsic Total Stock Options of Shares Price Life (Years) Value Outstanding at January 1, 2019 1,570,603 $ 10.76 Granted 299,500 $ 12.16 Assumed Presidio Bank stock options exchanged for Heritage Commerce Corp stock options 1,176,757 $ 5.05 Exercised (266,689) $ 6.10 Forfeited or expired (67,325) $ 14.31 Outstanding at December 31, 2019 2,712,846 $ 8.80 5.62 $ 12,369,413 Vested or expected to vest 2,550,075 5.62 $ 11,627,248 Exercisable at December 31, 2019 2,206,775 4.93 $ 12,151,054 Information related to the equity plans for each of the last three years: December 31, 2019 2018 2017 Intrinsic value of options exercised $ 1,618,615 $ 1,844,909 $ 1,342,794 Cash received from option exercise $ 1,626,113 $ 2,667,305 $ 1,368,673 Tax benefit realized from option exercises $ 258,037 $ 534,638 $ 547,817 Weighted average fair value of options granted $ 1.91 $ 3.03 $ 2.66 As of December 31, 2019, there was $ 1,156,000 of total unrecognized compensation cost related to nonvested stock options granted under the equity plans. That cost is expected to be recognized over a weighted‑average period of approximately 2.64 years. The fair value of each option grant is estimated on the date of grant using the Black‑Scholes option pricing model that uses the assumptions noted in the following table, including the weighted average assumptions for the option grants in each year. December 31, 2019 2018 2017 Expected life in months(1) 72 72 Volatility(1) 24 % 21 % 24 % Weighted average risk-free interest rate(2) 2.23 % 2.88 % 1.94 % Expected dividends(3) 3.95 % 2.64 % 2.78 % (1) (2) (3) The Company estimates the impact of forfeitures based on historical experience. Should the Company’s current estimate change, additional expense could be recognized or reversed in future periods. The Company issues authorized shares of common stock to satisfy stock option exercises. Restricted stock activity under the equity plans is as follows: Weighted Average Grant Number Date Fair Total Restricted Stock Award of Shares Value Nonvested shares at January 1, 2019 193,298 $ 11.04 Granted 134,653 $ 12.16 Vested (82,498) $ 12.37 Forfeited or expired (6,000) $ 17.11 Nonvested shares at December 31, 2019 239,453 $ 11.23 As of December 31, 2019, there was $2,340,000 of total unrecognized compensation cost related to nonvested restricted stock awards granted under the 2013 Plan. The cost is expected to be recognized over a weighted-average period of approximately 2.11 years. The Company has two share based compensation plans. Total compensation cost has been charged against income for those plans was $1,924,000, $1,817,000, $1,750,000, for 2019, 2018, and 2017, respectively. The total income tax benefit was $239,000, $424,000, and $146,000 for 2019, 2018, and 2017, respectively.

Benefit Plans

Benefit Plans	12 Months Ended
	Dec. 31, 2019
Benefit Plans
Benefit Plans	14) Benefit Plans 401(k) Savings Plan The Company offers a 401(k) savings plan that allows employees to contribute up to a maximum percentage of their compensation, as established by the Internal Revenue Code. The Company made a discretionary matching contribution of up to $3,000 and $2,500 for each employee’s contributions in 2019 and 2018, respectively. Contribution expense was $934,000, $749,000, and $535,000 in 2019, 2018 and 2017, respectively. Employee Stock Ownership Plan The Company sponsors a non‑contributory employee stock ownership plan. To participate in this plan, an employee must have worked at least 1,000 hours during the year and must be employed by the Company at year‑end. Employer contributions to the ESOP are discretionary. The Company has suspended contributions to the ESOP since 2010. The Plan was “frozen” as of January 1, 2019. At December 31, 2019, the ESOP owned 102,834 shares of the Company’s common stock. Deferred Compensation Plan The Company has a nonqualified deferred compensation plan for some of its employees. Under the deferred compensation plan, an employee may defer up to 100% of his or her bonus and 50% of their regular salary into a deferred account. Amounts deferred are invested in a portfolio of approved investment choices as directed by the employee. Amounts deferred by employees to the deferred compensation plan will be distributed at a future date they have selected or upon termination of employment. There were five and seven employees who elected to participate in the deferred compensation plan during 2019 and 2018, respectively. Nonqualified Defined Benefit Pension Plan The Company has a supplemental retirement plan (“SERP”) covering some current and some former key executives and directors. The SERP is an unfunded, nonqualified defined benefit plan. The combined number of active and retired/terminated participants in the SERP was 60 at December 31, 2019. The defined benefit represents a stated amount for key executives and directors that generally vests over nine years and is reduced for early retirement. The projected benefit obligation is included in “Accrued interest payable and other liabilities” on the consolidated balance sheets. The SERP has no assets and the projected benefit obligation is unfunded. The measurement date of the SERP is December 31. The following table sets forth the SERP’s status at December 31: 2019 2018 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 26,781 $ 28,510 Projected benefit obligation of SERP agreements acquired from Presidio 2,541 — Service cost 263 249 Actuarial loss (gain) 4,182 (1,885) Interest cost 1,059 947 Benefits paid (1,137) (1,040) Projected benefit obligation at end of year $ 33,689 $ 26,781 Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 9,670 $ 5,672 Weighted‑average assumptions used to determine the benefit obligation at year‑end: 2019 2018 Discount rate 3.01 % 4.03 % Rate of compensation increase N/A N/A Estimated benefit payments over the next ten years, which reflect anticipated future events, service and other assumptions, are as follows: Estimated Benefit Year Payments (Dollars in thousands) 2020 $ 1,509 2021 1,717 2022 1,863 2023 1,974 2024 2,011 2025 to 2029 11,366 $ 20,440 The components of pension cost for the SERP follow: 2019 2018 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 263 $ 249 Interest cost 1,059 947 Amortization of net actuarial loss 184 292 Accelerated benefits for Presidio SERP agreements due to change in control 1,465 — Net periodic benefit cost $ 2,971 $ 1,488 Amount recognized in other comprehensive income $ 2,847 $ 1,577 The components of net periodic benefit cost other than the service cost component are included in the line item “other noninterest expense” in the Consolidated Statements of Income. The estimated net actuarial loss and prior service cost for the SERP that will be amortized from Accumulated Other Comprehensive Loss into net periodic benefit cost over the next fiscal year are $387,000 and $183,000 as of December 31, 2019 and 2018, respectively. Net periodic benefit cost for the years ended December 31, 2019 and 2018 were determined using the following assumption: 2019 2018 Discount rate 4.03 % 3.38 % Rate of compensation increase N/A N/A Split‑Dollar Life Insurance Benefit Plan The Company maintains life insurance policies for some current and some former directors and officers that are subject to split‑dollar life insurance agreements, some of which continues after the participant’s employment and retirement. The policies acquired from Focus and Presidio do not include a post retirement benefit. All participants are fully vested in their split‑dollar life insurance benefits. The accrued benefit liability for the split‑dollar insurance agreements represents either the present value of the future death benefits payable to the participants’ beneficiaries or the present value of the estimated cost to maintain life insurance, depending on the contractual terms of the participant’s underlying agreement. The split‑dollar life insurance projected benefit obligation is included in “Accrued interest payable and other liabilities” on the consolidated balance sheets. The measurement date of the split‑dollar life insurance benefit plan is December 31. The following sets forth the funded status of the split dollar life insurance benefits: December 31, December 31, 2019 2018 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,903 $ 6,711 Interest cost 278 227 Actuarial loss (gain) 1,017 (35) Projected benefit obligation at end of period $ 8,198 $ 6,903 Amounts recognized in accumulated other comprehensive loss at December 31 consist of: December 31, December 31, 2019 2018 (Dollars in thousands) Net actuarial loss $ 3,776 $ 2,573 Prior transition obligation 1,059 1,149 Accumulated other comprehensive loss $ 4,835 $ 3,722 Weighted‑average assumption used to determine the benefit obligation at year‑end follow: 2019 2018 Discount rate 3.01 % 4.03 % Components of net periodic benefit cost during the year are: 2019 2018 (Dollars in thousands) Amortization of prior transition obligation $ (96) $ (65) Interest cost 278 227 Net periodic benefit cost $ 182 $ 162 Amount recognized in other comprehensive income $ 1,113 $ (30) The estimated net actuarial loss and prior transition obligation for the split‑dollar life insurance benefit plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year are $90,000 as of December 31, 2019 and 2018. Weighted‑average assumption used to determine the net periodic benefit cost: 2019 2018 Discount rate 4.03 % 3.38 %

Fair Value

Fair Value	12 Months Ended
	Dec. 31, 2019
Fair Value
Fair Value	15) Fair Value Accounting guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data (for example, interest rates and yield curves observable at commonly quoted intervals, prepayment speeds, credit risks, and default rates). Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. Financial Assets and Liabilities Measured on a Recurring Basis The fair values of securities available-for-sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). The Company uses matrix pricing (Level 2 inputs) to establish the fair value of its securities available-for-sale. The fair value of interest‑only (“I/O”) strip receivable assets is based on a valuation model used by a third party. The Company is able to compare the valuation model inputs and results to widely available published industry data for reasonableness (Level 2 inputs). Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at December 31, 2019 Available-for-sale securities: Agency mortgage-backed securities $ 284,361 — $ 284,361 — U.S. Treasury 120,464 120,464 — — I/O strip receivables 503 — 503 — Assets at December 31, 2018 Available-for-sale securities: Agency mortgage-backed securities $ 302,854 — $ 302,854 — U.S. Treasury 148,753 148,753 — — U.S. Government sponsored entities 7,436 — 7,436 — I/O strip receivables 568 — 568 — There were no transfers between Level 1 and Level 2 during the year for assets measured at fair value on a recurring basis. Financial Assets and Liabilities Measured on a Non‑Recurring Basis The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. The appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at December 31, 2019 Impaired loans - held-for-investment: Commercial $ 862 — — $ 862 $ 862 — — $ 862 Assets at December 31, 2018 Impaired loans - held-for-investment: Commercial $ 702 — — $ 702 $ 702 — — $ 702 The following table shows the detail of the impaired loans held-for-investment and the impaired loans held-for-investment carried at fair value for the periods indicated: December 31, 2019 December 31, 2018 (Dollars in thousands) Impaired loans held-for-investment: Book value of impaired loans held-for-investment carried at fair value $ 2,697 $ 7,646 Book value of impaired loans held-for-investment carried at cost 7,567 7,494 Total impaired loans held-for-investment $ 10,264 $ 15,140 Impaired loans held-for-investment carried at fair value: Book value of impaired loans held-for-investment carried at fair value $ 2,697 $ 7,646 Specific valuation allowance (1,835) (6,944) Impaired loans held-for-investment carried at fair value, net $ 862 $ 702 Impaired loans held‑for‑investment were $10,264,000 at December 31, 2019. In addition, these loans had a specific valuation allowance of $1,835,000 at December 31, 2019. Impaired loans held‑for‑investment totaling $2,697,000 at December 31, 2019 were carried at fair value as a result of partial charge‑offs and specific valuation allowances at year‑end. The remaining $7,567,000 of impaired loans were carried at cost at December 31, 2019, as the fair value of the collateral exceeded the cost basis of each respective loan. Partial charge‑offs and changes in specific valuation allowances during 2019 on impaired loans held‑for‑investment carried at fair value at December 31, 2019 resulted in an additional credit to provision for loan losses of $2,128,000. At December 31, 2019, there were no foreclosed assets. Impaired loans held‑for‑investment were $15,140,000 at December 31, 2018. In addition, these loans had a specific valuation allowance of $6,944,000 at December 31, 2018. Impaired loans held‑for‑investment totaling $7,646,000 at December 31, 2018 were carried at fair value as a result of partial charge‑offs and specific valuation allowances at year‑end. The remaining $7,494,000 of impaired loans were carried at cost at December 31, 2018, as the fair value of the collateral exceeded the cost basis of each respective loan. Partial charge‑offs and changes in specific valuation allowances during 2018 on impaired loans held‑for‑investment carried at fair value at December 31, 2018 resulted in an additional provision for loan losses of $7,042,000. At December 31, 2018, there were no foreclosed assets. The following table presents quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis, at December 31, 2019 and 2018: December 31, 2019 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 862 Market Approach Discount adjustment for differences between comparable sales Less than 1% December 31, 2018 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 702 Market Approach Discount adjustment for differences between comparable sales 0% to 1% The Company obtains third party appraisals on collateral for its impaired loans held‑for‑investment and foreclosed assets to determine fair value. Generally, the third party appraisals apply the “market approach,” which is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable (that is, similar) assets, liabilities, or a group of assets and liabilities, such as a business. Adjustments are then made based on the type of property, age of appraisal, current status of property and other related factors to estimate the current value of collateral. The carrying amounts and estimated fair values of financial instruments at December 31, 2019 are as follows: Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 457,370 $ 457,370 $ — $ — $ 457,370 Securities available-for-sale 404,825 120,464 284,361 — 404,825 Securities held-to-maturity 366,560 — 368,107 — 368,107 Loans (including loans held-for-sale), net 2,511,611 — 1,052 2,512,277 2,513,329 FHLB stock, FRB stock, and other investments 29,842 — — — N/A Accrued interest receivable 10,915 446 2,218 8,251 10,915 I/O strips receivables 503 — 503 — 503 Liabilities: Time deposits $ 168,034 $ — $ 158,704 $ — $ 158,704 Other deposits 3,246,734 — 3,246,734 — 3,246,734 Subordinated debt 39,554 — 40,404 — 40,404 Accrued interest payable 707 — 707 — 707 The carrying amounts and estimated fair values of financial instruments at December 31, 2018 are as follows: Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 164,568 $ 164,568 $ — $ — $ 164,568 Securities available-for-sale 459,043 148,753 310,290 — 459,043 Securities held-to-maturity 377,198 — 366,175 — 366,175 Loans (including loans held-for-sale), net 1,861,206 — 2,649 1,826,654 1,829,303 FHLB stock, FRB stock, and other investments 25,216 — — — N/A Accrued interest receivable 9,577 597 2,274 6,706 9,577 I/O strips receivables 568 — 568 — 568 Liabilities: Time deposits $ 147,560 $ — $ 147,916 $ — $ 147,916 Other deposits 2,489,972 — 2,489,972 — 2,489,972 Subordinated debt 39,369 — 38,969 — 38,969 Accrued interest payable 497 — 497 — 497 In accordance with our adoption of ASU 2016-01 in 2018, the methods utilized to measure the fair value of financial instruments at December 31, 2018 represent an approximation of exit price, however, an actual exit price may differ.

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies
Commitments and Contingencies	16) Commitments and Contingencies Financial Instruments with Off‑Balance Sheet Risk HBC is a party to financial instruments with off‑balance sheet risk in the normal course of business to meet the financing needs of its clients. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the balance sheets. HBC’s exposure to credit loss in the event of non‑performance of the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. HBC uses the same credit policies in making commitments and conditional obligations as it does for on‑balance sheet instruments. Credit risk is the possibility that a loss may occur because a party to a transaction failed to perform according to the terms of the contract. HBC controls the credit risk of these transactions through credit approvals, limits, and monitoring procedures. Management does not anticipate any significant losses as a result of these transactions. Commitments to extend credit were as follows: December 31, 2019 2018 Fixed Variable Fixed Variable Rate Rate Total Rate Rate Total (Dollars in thousands) Unused lines of credit and commitments to make loans $ 147,372 $ 951,206 $ 1,098,578 $ 130,871 $ 593,839 $ 724,710 Standby letters of credit 11,445 10,615 22,060 2,770 12,899 15,669 $ 158,817 $ 961,821 $ 1,120,638 $ 133,641 $ 606,738 $ 740,379 Commitments generally expire within one year. Standby letters of credit are written with conditional commitments issued by HBC to guarantee the performance of a client to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to clients. The Company is required to maintain interest‑bearing reserves. Reserve requirements are based on a percentage of certain deposits. As of December 31, 2019, the Company maintained reserves of $48,717,000 in the form of vault cash and balances at the Federal Reserve Bank of San Francisco, which satisfied the regulatory requirements. Loss Contingencies The Company is involved in certain legal actions arising from normal business activities. Management, based upon the advice of legal counsel, believes the ultimate resolution of all pending legal actions will not have a material effect on the financial statements of the Company.

Shareholders' Equity and Earnin

Shareholders' Equity and Earnings Per Share	12 Months Ended
	Dec. 31, 2019
Equity
Shareholders' Equity and Earnings Per Share	17) Shareholders’ Equity and Earnings Per Share Authorized Shares of Common Stock — At a Special Meeting of Shareholders on August 27, 2019, the Company’s shareholders approved an amendment to the Company’s articles of incorporation to increase the number of authorized shares of common stock from 60,000,000 to 100,000,000 shares of common stock. Earnings Per Share — Basic earnings per common share is computed by dividing net income, less dividends and discount accretion on preferred stock, by the weighted average common shares outstanding. Diluted earnings per share reflect potential dilution from outstanding stock options using the treasury stock method. There were 789,065, 534,106, and 346,500 stock options for the years ended December 31, 2019, 2018 and 2017, respectively, considered to be antidilutive and excluded from the computation of diluted earnings per share. A reconciliation of these factors used in computing basic and diluted earnings per common share is as follows: Year Ended December 31, 2019 2018 2017 (Dollars in thousands, except per share amounts) Net income $ 40,461 $ 35,331 $ $ 23,828 Weighted average common shares outstanding for basic earnings per common share 46,684,384 41,469,211 38,095,250 Dilutive potential common shares 1,221,845 713,728 515,565 Shares used in computing diluted earnings per common share 47,906,229 42,182,939 38,610,815 Basic earnings per share $ $ $ 0.63 Diluted earnings per share $ $ $ 0.62

Capital Requirements

Capital Requirements	12 Months Ended
	Dec. 31, 2019
Capital Requirements
Capital Requirements	18) Capital Requirements The Company and its subsidiary bank are subject to various regulatory capital requirements administered by the banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory—and possibly additional discretionary—actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements and operations. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and HBC must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off balance sheet items as calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. There are no conditions or events since December 31, 2019, that management believes have changed the categorization of the Company or HBC as “well-capitalized.” As of January 1, 2015, HCC and HBC along with other community banking organizations became subject to new capital requirements and certain provisions of the new rules were phased in from 2015 through 2019. The Federal Banking regulators approved the new rules to implement the revised capital adequacy standards of the Basel Committee on Banking Supervision, commonly called Basel III, and addressed relevant provisions of The Dodd Frank Wall Street Reform and Consumer Protection Act of 2010, as amended. The new capital rules established a “capital conservation buffer,” which must consist entirely of common equity Tier 1 capital. The capital conservation buffer is 2.5% of risk-weighted assets for 2019 and 1.875% for 2018. The Company and HBC must maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The Company’s consolidated capital ratios and the Bank’s capital ratios exceeded the regulatory guidelines for a well-capitalized financial institution under the Basel III regulatory requirements at December 31, 2019. Quantitative measures established by regulation to help ensure capital adequacy require the Company and HBC to maintain minimum amounts and ratios (set forth in the tables below) of total, Tier 1 capital, and common equity Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital to average assets (as defined). Management believes that, as of December 31, 2019 and December 31, 2018, the Company and HBC met all capital adequacy guidelines to which they were subject. The Company’s consolidated capital amounts and ratios are presented in the following table, together with capital adequacy requirements, under the Basel III regulatory requirements as of December 31, 2019, and December 31, 2018. Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2019 Total Capital $ 457,158 14.6 % $ 329,306 10.5 % (to risk-weighted assets) Tier 1 Capital $ 393,432 12.5 % $ 266,581 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 393,432 12.5 % $ 219,538 7.0 % (to risk-weighted assets) Tier 1 Capital $ 393,432 9.7 % $ 161,677 4.0 % (to average assets) (1) Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2018 Total Capital $ 344,597 15.0 % $ 227,514 9.875 % (to risk-weighted assets) Tier 1 Capital $ 276,675 12.0 % $ 181,435 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 276,675 12.0 % $ 146,876 6.375 % (to risk-weighted assets) Tier 1 Capital $ 276,675 8.9 % $ 124,726 4.000 % (to average assets) (1) HBC’s actual capital amounts and ratios are presented in the following table, together with capital adequacy requirements, under the Basel III regulatory requirements as of December 31, 2019, and December 31, 2018. Required For Capital To Be Well-Capitalized Adequacy Under Basel III PCA Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2019 Total Capital $ 435,757 13.9 % $ 313,485 10.0 % $ 329,159 10.5 % (to risk-weighted assets) Tier 1 Capital $ 411,585 13.1 % $ 250,788 8.0 % $ 266,462 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 411,585 13.1 % $ 203,765 6.5 % $ 219,439 7.0 % (to risk-weighted assets) Tier 1 Capital $ 411,585 10.2 % $ 202,013 5.0 % $ 161,611 4.0 % (to average assets) (1) Required For Capital To Be Well-Capitalized Adequacy Under Basel III PCA Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2018 Total Capital $ 322,283 14.0 % $ 230,275 10.0 % $ 227,397 9.875 % (to risk-weighted assets) Tier 1 Capital $ 293,730 12.8 % $ 184,220 8.0 % $ 181,342 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 293,730 12.8 % $ 149,679 6.5 % $ 146,800 6.375 % (to risk-weighted assets) Tier 1 Capital $ 293,730 9.4 % $ 155,832 5.0 % $ 124,666 4.000 % (to average assets) (1) The Subordinated Debt, net of unamortized issuance costs, totaled $39,554,000 at December 31, 2019, and qualifies as Tier 2 capital for the Company under the guidelines established by the Federal Reserve Bank. Under California General Corporation Law, the holders of common stock are entitled to receive dividends when and as declared by the Board of Directors, out of funds legally available. The California Financial Code provides that a state licensed bank may not make a cash distribution to its shareholders in excess of the lesser of the following: (i) the bank’s retained earnings; or (ii) the bank’s net income for its last three fiscal years, less the amount of any distributions made by the bank to its shareholders during such period. However, a bank, with the prior approval of the Commissioner of the California Department of Business Oversight—Division of Financial Institutions (“DBO”) may make a distribution to its shareholders of an amount not to exceed the greater of (i) a bank’s retained earnings; (ii) its net income for its last fiscal year; or (iii) its net income for the current fiscal year. Also with the prior approval of the Commissioner of the DBO and the shareholders of the bank, the bank may make a distribution to its shareholders, as a reduction in capital of the bank. In the event that the Commissioner determines that the shareholders’ equity of a bank is inadequate or that the making of a distribution by a bank would be unsafe or unsound, the Commissioner may order a bank to refrain from making such a proposed distribution. As of December 31, 2019, HBC would not be required to obtain regulatory approval, and the amount available for cash dividends is $20,636,000. Similar restrictions applied to the amount and sum of loan advances and other transfers of funds from HBC to the parent company. HBC distributed dividends totaling $22,500,000 and $17,000,000 for the years ended December 31, 2019 and 2018, respectively.

Revenue Recognition

Revenue Recognition	12 Months Ended
	Dec. 31, 2019
Revenue Recognition
Revenue Recognition	19) Revenue Recognition On January 1, 2018, the Company adopted ASU No. 2014-09 (Topic 606) and all subsequent ASUs that modified Topic 606. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, gain on sale of securities, bank-owned life insurance, gain on sales of SBA loans, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as deposit related fees, interchange fees, and merchant income. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. The following noninterest income revenue streams are in-scope of Topic 606: Service charges and fees on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. We sometimes charge customers fees that are not specifically related to the customer accessing its funds, such as account maintenance or dormancy fees. The amount of deposit fees assessed varies based on a number of factors, such as the type of customer and account, the quantity of transactions, and the size of the deposit balance. We charge, and in some circumstances do not charge, fees to earn additional revenue and influence certain customer behavior. An example would be where we do not charge a monthly service fee, or do not charge for certain transactions, for customers that have a high deposit balance. Deposit fees are considered either transactional in nature (such as wire transfers, nonsufficient fund fees, and stop payment orders) or non-transactional (such as account maintenance and dormancy fees). These fees are recognized as earned or as transactions occur and services are provided. Check orders and other deposit account related fees are largely transactional based and, therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the periods indicated: Year Ended December 31, 2019 2018 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 4,510 $ 4,113 Noninterest Income Out-of-scope of Topic 606 5,734 5,461 Total noninterest income $ 10,244 $ 9,574

Noninterest Expense

Noninterest Expense	12 Months Ended
	Dec. 31, 2019
Noninterest Expense
Noninterest Expense	20) Noninterest Expense The following table indicates the various components of the Company’s noninterest expense in each category for the periods indicated: Year Ended December 31, 2019 2018 2017 (Dollars in thousands) Salaries and employee benefits $ 50,754 $ 43,762 $ 35,719 Occupancy and equipment 6,647 5,411 4,578 Professional fees 3,259 1,969 2,982 Data processing 2,890 1,978 1,483 Amortization of intangible assets 2,739 1,943 1,361 Software subscriptions 2,397 2,343 1,831 Insurance expense 1,864 1,685 1,529 Other 14,348 16,430 11,255 Total noninterest expense $ 84,898 $ 75,521 $ 60,738 The following table presents the merger-related costs by category for the periods indicated: For the Year Ended December 31, December 31, December 31, 2019 2018 2017 (Dollars in thousands) Salaries and employee benefits $ 6,580 $ 3,569 $ — Other 4,500 5,598 671 Total merger-related costs $ 11,080 $ 9,167 $ 671

Business Segment Information

Business Segment Information	12 Months Ended
	Dec. 31, 2019
Business Segment Information
Business Segment Information	21) Business Segment Information The following presents the Company’s operating segments. The Company operates through two business segments: Banking segment and Factoring segment. Transactions between segments consist primarily of borrowed funds. Intersegment interest expense is allocated to the Factoring segment based on the Company’s prime rate and funding costs. The provision for loan loss is allocated based on the segment’s allowance for loan loss determination which considers the effects of charge-offs. Noninterest income and expense directly attributable to a segment are assigned to it. Taxes are paid on a consolidated basis and allocated for segment purposes. The Factoring segment includes only factoring originated by Bay View Funding. Year Ended December 31, 2019 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 130,971 $ 11,688 $ 142,659 Intersegment interest allocations 1,182 (1,182) — Total interest expense 10,847 — 10,847 Net interest income 121,306 10,506 131,812 Provision for loan losses 517 329 846 Net interest income after provision 120,789 10,177 130,966 Noninterest income 9,643 601 10,244 Noninterest expense (2) 78,159 6,739 84,898 Intersegment expense allocations 547 (547) — Income before income taxes 52,820 3,492 56,312 Income tax expense 14,819 1,032 15,851 Net income $ 38,001 $ 2,460 $ 40,461 Total assets $ 4,045,801 $ 63,662 $ 4,109,463 Loans, net of deferred fees $ 2,487,864 $ 45,980 $ 2,533,844 Goodwill $ 154,376 $ 13,044 $ 167,420 (1) (2) Year Ended December 31, 2018 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 115,147 $ 14,698 $ 129,845 Intersegment interest allocations 1,856 (1,856) — Total interest expense 7,822 — 7,822 Net interest income 109,181 12,842 122,023 Provision for loan losses 7,224 197 7,421 Net interest income after provision 101,957 12,645 114,602 Noninterest income 8,662 912 9,574 Noninterest expense (2) 69,164 6,357 75,521 Intersegment expense allocations 753 (753) — Income before income taxes 42,208 6,447 48,655 Income tax expense 11,418 1,906 13,324 Net income $ 30,790 $ 4,541 $ 35,331 Total assets $ 3,028,721 $ 67,841 $ 3,096,562 Loans, net of deferred fees $ 1,832,815 $ 53,590 $ 1,886,405 Goodwill $ 70,709 $ 13,044 $ 83,753 (1) Includes the holding company’s results of operations. (2) The banking segment’s noninterest expense includes acquisition costs of $9,167,000. Year Ended December 31, 2017 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 95,027 $ 11,884 $ 106,911 Intersegment interest allocations 1,126 (1,126) — Total interest expense 5,387 — 5,387 Net interest income 90,766 10,758 101,524 Provision (credit) for loan losses 102 (3) 99 Net interest income after provision 90,664 10,761 101,425 Noninterest income 8,559 1,053 9,612 Noninterest expense (2) 53,860 6,878 60,738 Intersegment expense allocations 528 (528) — Income before income taxes 45,891 4,408 50,299 Income tax expense (3) 24,266 2,205 26,471 Net income $ 21,625 $ 2,203 $ 23,828 Total assets $ 2,780,286 $ 63,166 $ 2,843,452 Loans, net of deferred fees $ 1,533,841 $ 48,826 $ 1,582,667 Goodwill $ 32,620 $ 13,044 $ 45,664 (1) Includes the holding company’s results of operations. (2) (3)

Parent Company only Condensed F

Parent Company only Condensed Financial Information	12 Months Ended
	Dec. 31, 2019
Parent Company only Condensed Financial Information
Parent Company only Condensed Financial Information	22) Parent Company only Condensed Financial Information The condensed financial statements of Heritage Commerce Corp (parent company only) are as follows: Condensed Balance Sheets December 31, 2019 2018 (Dollars in thousands) Assets Cash and cash equivalents $ 20,260 $ 21,358 Investment in subsidiary bank 594,868 384,516 Other assets 1,761 1,194 Total assets $ 616,889 $ 407,068 Liabilities and Shareholders' Equity Subordinated debt, net of issuance costs 39,554 39,369 Other liabilities 627 233 Shareholders' equity 576,708 367,466 Total liabilities and shareholders' equity $ 616,889 $ 407,068 Condensed Statements of Operations Year Ended December 31, 2019 2018 2017 (Dollars in thousands) Dividend from subsidiary bank $ 22,500 $ 17,000 $ 16,000 Other income 121 — 114 Interest expense (2,314) (2,315) (1,394) Other expenses (3,084) (3,030) (2,270) Income before income taxes and equity in net income of subsidiary bank 17,223 11,655 12,450 Equity in undistributed net income of subsidiary bank 21,757 22,161 10,078 Income tax benefit 1,481 1,515 1,300 Net income $ 40,461 $ 35,331 $ 23,828 Condensed Statements of Cash Flows Year Ended December 31, 2019 2018 2017 (Dollars in thousands) Cash flows from operating activities: Net Income $ 40,461 $ 35,331 $ 23,828 Adjustments to reconcile net income to net cash provided by operations: Amortization of restricted stock awards, net 1,283 1,109 912 Equity in undistributed net income of subsidiary bank (21,757) (22,161) (10,078) Net change in other assets and liabilities 12 (64) 224 Net cash provided by operating activities 19,999 14,215 14,886 Cash flows from financing activities: Equity investment in subsidiary bank — — (20,000) Payment of cash dividends (22,723) (18,464) (15,238) Proceeds from issuance of subordinated debt, net of issuance costs — — 39,073 Proceeds from exercise of stock options 1,626 2,667 1,368 Net cash provided by (used in) financing activities (21,097) (15,797) 5,203 Net increase (decrease) in cash and cash equivalents (1,098) (1,582) 20,089 Cash and cash equivalents, beginning of year 21,358 22,940 2,851 Cash and cash equivalents, end of year $ 20,260 $ 21,358 $ 22,940

Quarterly Financial Data (Unaud

Quarterly Financial Data (Unaudited)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)	23) Quarterly Financial Data (Unaudited) The following table discloses the Company’s selected unaudited quarterly financial data: Quarter Ended 12/31/2019 9/30/2019 6/30/2019 3/31/2019 (Dollars in thousands, except per share amounts) Interest income $ 42,471 $ 33,250 $ 33,489 $ 33,449 Interest expense 3,242 2,625 2,573 2,407 Net interest income 39,229 30,625 30,916 31,042 Provision (credit) for loan losses 3,223 (576) (740) (1,061) Net interest income after provision for loan losses 36,006 31,201 31,656 32,103 Noninterest income 2,393 2,618 2,765 2,468 Noninterest expense (1) 30,626 17,909 18,445 17,918 Income before income taxes 7,773 15,910 15,976 16,653 Income tax expense 2,088 4,633 4,623 4,507 Net income $ 5,685 $ 11,277 $ 11,353 $ 12,146 Earnings per common share Basic $ 0.10 $ 0.26 $ 0.26 $ 0.28 Diluted $ 0.10 $ 0.26 $ 0.26 $ 0.28 (1) Includes $9,879,000, $661,000, and $540,000 pre-tax acquisition costs in the fourth, third, and second quarters of 2019, respectively, related to the Presidio merger. Quarter Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 (Dollars in thousands, except per share amounts) Interest income $ 35,378 $ 34,610 $ 31,980 $ 27,877 Interest expense 2,318 2,159 1,816 1,529 Net interest income 33,060 32,451 30,164 26,348 Provision for loan losses 142 (425) 7,198 506 Net interest income after provision for loan losses 32,918 32,876 22,966 25,842 Noninterest income 2,393 2,206 2,780 2,195 Noninterest expense (1) 16,941 17,728 24,862 15,990 Income before income taxes 18,370 17,354 884 12,047 Income tax expense 5,138 4,979 (31) 3,238 Net income $ 13,232 $ 12,375 $ 915 $ 8,809 Earnings per common share Basic $ 0.31 $ 0.29 $ 0.02 $ 0.23 Diluted $ 0.30 $ 0.28 $ 0.02 $ 0.23 (1) Includes $139,000, $199,000, $8,214,000, and $615,000 pre-tax acquisition costs in the fourth, third, second and first quarters of 2018, respectively, related to the Tri-Valley and United American mergers.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2019
Subsequent Events
Subsequent Events	24) Subsequent Events On January 23, 2020, the Company announced that its Board of Directors declared a $0.13 per share quarterly cash dividend to holders of common stock. The dividend will be paid on February 19, 2020 to shareholders of record on February 5, 2020.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Summary of Significant Accounting Policies
Description of Business and Basis of Presentation	Description of Business and Basis of Presentation Heritage Commerce Corp (“HCC”) operates as a registered bank holding company for its wholly-owned subsidiary Heritage Bank of Commerce (“HBC” or the “Bank”), collectively referred to as the “Company”. HBC was incorporated on November 23, 1993 and commenced operations on June 8, 1994. HBC is a California state chartered bank which offers a full range of commercial and personal banking services to residents and the business/professional community in Santa Clara, Alameda, and Contra Costa counties of California. CSNK Working Capital Finance Corp. a California corporation, dba Bay View Funding (“Bay View Funding”) is a wholly owned subsidiary of HBC. Bay View Funding’s primary business operation is purchasing and collecting factored receivables. Factored receivables are receivables that have been transferred by the originating organization and typically have not been subject to previous collection efforts. In a factoring transaction Bay View Funding directly purchases the receivables generated by its clients at a discount to their face value. The transactions are structured to provide the clients with immediate working capital when there is a mismatch between payments to the client for a good and service and the payment of operating costs incurred to provide such good or service. The Company acquired Tri-Valley Bank (“Tri-Valley”) on April 6, 2018. Tri-Valley was merged with HBC, with HBC as the surviving bank. Tri-Valley’s results of operations have been included in the Company’s results of operations beginning April 7, 2018. The Company acquired United American Bank (“United American”) on May 4, 2018. United American was merged with HBC, with HBC as the surviving bank. United American’s results of operations have been included in the Company’s results of operations beginning May 5, 2018. The Company acquired Presidio Bank (“Presidio”) on October 11, 2019. Presidio was merged with HBC, with HBC as the surviving bank. Presidio’s results of operations have been included in the Company’s results of operations beginning October 12, 2019. The consolidated financial statements are prepared in accordance with accounting policies generally accepted in the United States of America and general practices in the banking industry. The financial statements include the accounts of the Company. All inter-company accounts and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks, amounts held at the Federal Reserve Bank, and Federal funds sold. The Company is required to maintain reserves against certain of the deposit accounts with the Federal Reserve Bank. Federal funds are generally sold and purchased for one‑day periods.
Cash Flows	Cash Flows Net cash flows are reported for customer loan and deposit transactions, notes payable, repurchase agreements and other short‑term borrowings.
Securities	Securities The Company classifies its securities as either available-for-sale or held-to-maturity at the time of purchase. Debt securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities not classified as held-to-maturity are classified as available-for-sale. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive income, net of taxes. A decline in the fair value of any available-for-sale or held-to-maturity security below amortized cost that is deemed other than temporary results in a charge to earnings and the corresponding establishment of a new cost basis for the security. In estimating other-than-temporary losses, management considers (1) the length of time and extent that fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the fair value decline was affected by macroeconomic conditions, and (4) whether the Company has the intention to sell the security or more likely than not will be required to sell the security before any anticipated recovery in fair value. Interest income includes amortization of purchase premiums or discounts. Premiums and discounts are amortized, or accreted, over the life of the related security as an adjustment to income using a method that approximates the interest method. Realized gains and losses are recorded on the trade date and determined using the specific identification method for the cost of securities sold.
Loan Sales and Servicing	Loan Sales and Servicing The Company holds for sale the conditionally guaranteed portion of certain loans guaranteed by the Small Business Administration or the U.S. Department of Agriculture (collectively referred to as “SBA loans”). These loans are carried at the lower of aggregate cost or fair value. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Gains or losses on SBA loans held-for-sale are recognized upon completion of the sale, based on the difference between the selling price and the carrying value of the related loan sold. SBA loans are sold with servicing retained. Servicing assets recognized separately upon the sale of SBA loans consist of servicing rights and, for loans sold prior to 2009, interest‑only strip receivables (“I/O strips”). The Company accounts for the sale and servicing of SBA loans based on the financial and servicing assets it controls and liabilities it has incurred, reversing recognition of financial assets when control has been surrendered, and reversing recognition of liabilities when extinguished. Servicing rights are initially recorded at fair value with the income statement effect recorded in gains on sale of loans. Servicing rights are amortized in proportion to and over the period of net servicing income and are assessed for impairment on an ongoing basis. Impairment is determined by stratifying the servicing rights based on interest rates and terms. Any servicing assets in excess of the contractually specified servicing fees are reclassified at fair value as an I/O strip receivable and treated like an available for sale security. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market‑based assumptions. Impairment is recognized through a valuation allowance. The servicing rights, net of any required valuation allowance, and I/O strip receivable are included in other assets on the consolidated balance sheets. Servicing income, net of amortization of servicing rights, is recognized as noninterest income. The initial fair value of I/O strip receivables is amortized against interest income on loans.
Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at the principal amount outstanding, net of deferred loan origination fees and costs on originated loans, or unamortized premiums or discounts on purchased or acquired loans, and an allowance for loan losses. Interest on loans is accrued on the unpaid principal balance and is credited to income using the effective yield interest method. Interest on purchased or acquired loans and the accretion (amortization) of the related purchase discount (premium) is also credited to income using the effective yield interest method. A loan portfolio segment is defined as the level at which the Company uses a systematic methodology to determine the allowance for loan losses. A loan portfolio class is defined as a group of loans having similar risk characteristics and methods for monitoring and assessing risk. For all loan classes, when a loan is classified as nonaccrual, the accrual of interest is discontinued, any accrued and unpaid interest is reversed, and the amortization of deferred loan fees and costs is discontinued. For all loan classes, loans are classified as nonaccrual when the payment of principal or interest is 90 days past due, unless the loan is well secured and in the process of collection. Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. In certain circumstances, loans that are under 90 days past due may also be classified as nonaccrual. Any interest or principal payments received on nonaccrual loans are applied toward reduction of principal. Nonaccrual loans generally are not returned to performing status until the obligation is brought current, the loan has performed in accordance with the contract terms for a reasonable period of time, and the ultimate collectability of the contractual principal and interest is no longer in doubt. Non‑refundable loan fees and direct origination costs are deferred and recognized over the expected lives of the related loans using the effective yield interest method.
Acquired Loans	Acquired Loans Loans acquired through purchase or through a business combination are recorded at their fair value at the acquisition date. Credit discounts or premiums are included in the determination of fair value; therefore, an allowance for loan losses is not recorded at the acquisition date. Should the Company's allowance for loan losses methodology indicate that the credit discount associated with acquired, non-purchased credit impaired loans, is no longer sufficient to cover probable losses inherent in those loans, the Company will establish an allowance for those loans through a charge to provision for loan losses. Acquired loans are evaluated upon acquisition for evidence of deterioration in credit quality since origination such that it is probable at acquisition that the Company will be unable to collect all contractually required payments. Such loans are classified as purchased credit impaired loans ("PCI loans"), while all other acquired loans are classified as non-PCI loans. The Company has elected to account for PCI loans on an individual loan level. The Company estimates the amount and timing of expected cash flows for each loan. The expected cash flow in excess of the loan's carrying value, which is fair value on the date of acquisition, is referred to as the accretable yield, and is recorded as interest income over the remaining expected life of the loan. The excess of the loan's contractual principal and interest over expected cash flows is referred to as the non-accretable difference, and is not recorded in the Company's Consolidated Financial Statements. Quarterly, management performs an evaluation of expected future cash flows for PCI loans. If current expectations of future cash flows are less than management's previous expectations, other than due to decreases in interest rates and prepayment assumptions, an allowance for loan losses is recorded with a charge to current period earnings through provision for loan losses. If there has been a probable and significant increase in expected future cash flows over that which was previously expected, the Company would first reduce any previously established allowance for loan and lease losses, and then record an adjustment to interest income through a prospective increase in the accretable yield. There were no PCI loans at December 31, 2019 and December 31, 2018.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is an estimate of probable incurred losses in the loan portfolio. Loans are charged‑off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance for loan losses. Management’s methodology for estimating the allowance balance consists of several key elements, which include specific allowances on individual impaired loans and the formula driven allowances on pools of loans with similar risk characteristics. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off. Specific allowances are established for impaired loans. Management considers a loan to be impaired when it is probable that the Company will be unable to collect all amounts due according to the original contractual terms of the loan agreement, including scheduled interest payments. Loans for which the terms have been modified with a concession granted, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. When a loan is considered to be impaired, the amount of impairment is measured based on the fair value of the collateral, less costs to sell, if the loan is collateral dependent, or on the present value of expected future cash flows or values that are observable in the secondary market if the loan is not collateral dependent. The amount of any impairment will be charged off against the allowance for loan losses if the amount is a confirmed loss or, alternatively, a specific allocation within the allowance will be established. Loans that are considered impaired are specifically excluded from the formula portion of the allowance for loan losses analysis. The formula driven allowance on pools of loans covers all loans that are not impaired and is based on historical losses of each loan segment adjusted for current factors. In calculating the historical component of our allowance, we aggregate our loans into one of three loan segments: Commercial, Real Estate and Consumer. Each segment of loans in the portfolio possess varying degrees of risk, based on, among other things, the type of loan being made, the purpose of the loan, the type of collateral securing the loan, and the sensitivity the borrower has to changes in certain external factors such as economic conditions. The following provides a summary of the risks associated with various segments of the Company’s loan portfolio, which are factors management regularly considers when evaluating the adequacy of the allowance:  Commercial loans consist primarily of commercial and industrial (“C&I”) loans (business lines of credit), and other commercial purpose loans. Repayment of commercial and industrial loans is generally provided from the cash flows of the related business to which the loan was made. Adverse changes in economic conditions may result in a decline in business activity, which may impact a borrower’s ability to continue to make scheduled payments. The factored receivables at Bay View Funding are included in the Company’s commercial loan portfolio; however, they are evaluated for risk primarily based on the agings of the receivables. Faster turning receivables imply less risk and therefore warrant a lower associated allowance. Should the overall aging for the portfolio increase, this structure will by formula increase the allowance to reflect the increasing risk. Should the portfolio turn more quickly, it would reduce the associated allowance to reflect the reducing risk.  Real estate loans consist primarily of loans secured by commercial real estate (“CRE”) and residential real estate. Also included in this segment are land and construction loans and home equity lines of credit secured by real estate. As the majority of this segment is comprised of commercial real estate loans, risks associated with this segment lay primarily within these loan types. Adverse economic conditions may result in a decline in business activity and increased vacancy rates for commercial properties. These factors, in conjunction with a decline in real estate prices, may expose the Company to the potential for losses if a borrower cannot continue to service the loan with operating revenues, and the value of the property has declined to a level such that it no longer fully covers the Company’s recorded investment in the loan.  Consumer loans consist primarily of a large number of small loans and lines of credit. The majority of installment loans are made for consumer and business purchases. Weakened economic conditions may result in an increased level of delinquencies within this segment, as economic pressures may impact the capacity of such borrowers to repay their obligations. As a result of the matters mentioned above, changes in the financial condition of individual borrowers, economic conditions, historical loss experience and the condition of the various markets in which collateral may be sold may all affect the required level of the allowance for loan losses and the associated provision for loan losses. The estimated loss factors for pools of loans that are not impaired are based on determining the probability of default and loss given default for loans within each segment of the portfolio, adjusted for significant factors that, in management’s judgment, affect collectibility as of the evaluation date. The Company’s historical delinquency experience and loss experience are utilized to determine the probability of default and loss given default for segments of the portfolio where the Company has experienced losses since the first quarter of 2009. For segments of the portfolio where the Company has no significant prior loss experience, the Company uses quantifiable observable industry data to determine the probability of default and loss given default. Risk factors impacting loans in each of the portfolio segments include broad deterioration of property values, reduced consumer and business spending as a result of continued high unemployment and reduced credit availability and lack of confidence in a sustainable recovery. The historical loss experience is adjusted for management’s estimate of the impact of other factors based on the risks present for each portfolio segment. These other factors include consideration of the following: the overall level of concentrations and trends of classified loans; loan concentrations within a portfolio segment or division of a portfolio segment; identification of certain loan types with higher risk than other loans; existing internal risk factors; and management’s evaluation of the impact of local and national economic conditions on each of our loan types.
Loan Commitments and Related Financial Instruments	Loan Commitments and Related Financial Instruments Financial instruments include off‑balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when they are funded.
Federal Home Loan Bank and Federal Reserve Bank Stock	Federal Home Loan Bank and Federal Reserve Bank Stock As a member of the Federal Home Loan Bank (“FHLB”) system, the Bank is required to own common stock in the FHLB based on the Bank’s level of borrowings and outstanding FHLB advances. FHLB stock is carried at cost and classified as a restricted security. Both cash and stock dividends from the FHLB are reported as income. As a member of the Federal Reserve Bank (“FRB”) of San Francisco, the Bank is required to own stock in the FRB of San Francisco based on a specified ratio relative to our capital. FRB stock is carried at cost and may be sold back to the FRB at its carrying value. Cash dividends received from the FRB are reported as income.
Company Owned Life Insurance and Split-Dollar Life Insurance Benefit Plan	Company-Owned Life Insurance and Split‑Dollar Life Insurance Benefit Plan The Company has purchased life insurance policies on certain directors and officers. Company-owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for charges or other amounts due that are probable at settlement. The purchased insurance is subject to split‑dollar insurance agreements with the insured participants, which continues after the participant’s employment and retirement. Accounting guidance requires that a liability be recorded primarily over the participant’s service period when a split-dollar life insurance agreement continues after a participant’s employment or retirement. The required accrued liability is based on either the post-employment benefit cost for the continuing life insurance or the future death benefit depending on the contractual terms of the underlying agreement.
Premises and Equipment	Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation and amortization are computed on the straight‑line basis over the lesser of the respective lease terms or estimated useful lives. The Company owns one building which is being depreciated over 40 years. Furniture, equipment, and leasehold improvements are depreciated over estimated useful lives generally ranging from five to fifteen years. The Company evaluates the recoverability of long‑lived assets on an ongoing basis.
Business Combinations	Business Combinations The Company accounts for acquisitions of businesses using the acquisition method of accounting. Under the acquisition method, assets acquired and liabilities assumed are recorded at their estimated fair values at the date of acquisition. Management utilizes various valuation techniques including discounted cash flow analyses to determine these fair values. Any excess of the purchase price over amounts allocated to the acquired assets, including identifiable intangible assets, and liabilities assumed is recorded as goodwill.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill resulted from the acquisition of Presidio on October 11, 2019, Tri-Valley on April 6, 2018 and United American on May 4, 2018, and from acquisitions in prior years. Goodwill represents the excess of the purchase price over the fair value of acquired tangible assets and liabilities and identifiable intangible assets. Goodwill is assessed at least annually for impairment and any such impairment is recognized in the period identified. Other intangible assets consist of a core deposit intangible assets from the Focus Business Bank (“Focus”) acquisition in August 2015, the Tri-Valley acquisition in April 2018, the United American acquisition in May 2018, and the Presidio merger in October 2019, and below market value lease intangible assets from the Tri-Valley and United American acquisitions, and an above market lease liability from the Presidio merger. In addition, a customer relationship and brokered relationship intangible assets arising from the Bay View Funding acquisition in November 2014 are included in other intangible assets. They are initially measured at fair value and then are amortized over their estimated useful lives. The core deposits intangible assets from the acquisitions are being amortized on an accelerated method over ten years. The below market value lease intangible assets are being amortized on the straight line method over three years for United American and eleven years for Tri-Valley. The above market lease adjustment is being amortized on the straight line method over 60 months for Presidio. The customer relationship and brokered relationship intangible assets from the Bay View Funding acquisition are being amortized over ten years.
Foreclosed Assets	Foreclosed Assets Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. If fair value declines subsequent to foreclosure, a valuation allowance is recorded through operations. Operating costs after acquisition are expensed. Gains and losses on disposition are included in noninterest expense. There were no foreclosed assets at December 31, 2019 and 2018.
Retirement Plans	Retirement Plans Expenses for the Company’s non‑qualified, unfunded defined benefits plan consists of service and interest cost and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions. Deferred compensation and supplemental retirement plan expense allocates the benefits over years of service.
Loss Contingencies	Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. The Company’s accounting policy for legal costs related to loss contingencies is to accrue for the probable fees that can be reasonably estimated. The Company’s accounting policy for uncertain recoveries is to recognize the anticipated recovery when realization is deemed probable.
Income Taxes	Income Taxes The Company files consolidated Federal and combined and separate state income tax returns. Income tax expense is the total of the current year income tax payable or refunded, the change in deferred tax assets and liabilities, and low income housing investment losses, net of tax benefits received. Some items of income and expense are recognized in different years for tax purposes when applying generally accepted accounting principles, leading to timing differences between the Company’s actual tax liability and the amount accrued for this liability based on book income. These temporary differences comprise the “deferred” portion of the Company’s tax expense or benefit, which is accumulated on the Company’s books as a deferred tax asset or deferred tax liability until such time as they reverse. Realization of the Company’s deferred tax assets is primarily dependent upon the Company generating sufficient taxable income to obtain benefit from the reversal of net deductible temporary differences and utilization of tax credit carryforwards for Federal and California state income tax purposes. The amount of deferred tax assets considered realizable is subject to adjustment in future periods based on estimates of future taxable income. Under generally accepted accounting principles, a valuation allowance is required to be recognized if it is “more likely than not” that a deferred tax asset will not be realized. The determination of the realizability of the deferred tax assets is highly subjective and dependent upon judgment concerning management’s evaluation of both positive and negative evidence, including forecasts of future income, cumulative losses, applicable tax planning strategies, and assessments of current and future economic and business conditions. In March 2016, the FASB issued new guidance intended to simplify several areas of accounting for share-based compensation programs, including the income tax impact, classification on the statement of cash flows, and forfeitures. The Company adopted the new guidance on share-based compensation during the first quarter of 2017. All excess tax benefits and tax deficiencies (including tax benefits of dividends on share‑based payment awards) are recognized as income tax expense or benefit on the income statement. The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur. The adoption of this guidance resulted in a reduction to tax expense of $146,000 and $424,000 and $146,000 for the years ended December 31, 2019, 2018, and 2017 respectively. On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”), was signed into law, which among other things reduces the federal corporate tax rate to 21% from 35%, effective January 1, 2018. When tax rates change, U.S. generally accepted accounting principles requires companies to remeasure certain tax-related assets and liabilities as of the date of enactment of the new legislation with the resulting tax effects accounted for as a discrete item recorded as a component of tax expense or benefit in the reporting period. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest and penalties related to uncertain tax positions as income tax expense.
Stock-Based Compensation	Stock‑Based Compensation Compensation cost is recognized for stock options and restricted stock awards issued to employees and directors, based on the fair value of these awards at the date of grant. A Black‑Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight‑line basis over the requisite service period for the entire award. Compensation cost recognized reflects estimated forfeitures, adjusted as necessary for actual forfeitures.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Total comprehensive income (loss) consists of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to gains and losses that are included in comprehensive income (loss) but are excluded from net income (loss) because they have been recorded directly in equity, net of tax, under the provisions of certain accounting guidance. The Company’s sources of other comprehensive income (loss) are unrealized gains and losses on securities available‑for‑sale, and I/O strips, which are treated like available‑for‑sale securities, and the liabilities related to the Company’s defined benefit pension plan and the split‑dollar life insurance benefit plan. Reclassification adjustments result from gains or losses that were realized and included in net income (loss) of the current period that also had been included in other comprehensive income as unrealized holding gains and losses.
Segment Reporting	Segment Reporting HBC is a commercial bank serving customers located in Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara counties of California. Bay View Funding provides business essential working capital factoring financing to various industries throughout the United States. No customer accounts for more than 10 percent of revenue for HBC or the Company. With the previous acquisition of Bay View Funding, the Company has two reportable segments consisting of Banking and Factoring.
Reclassifications	Reclassifications Certain items in the consolidated financial statements for the years ended December 31, 2018 and 2017 were reclassified to conform to the 2019 presentation. These reclassifications did not affect previously reported net income or shareholders’ equity.
Adoption of New Accounting Standards	Adoption of New Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842)”. The pronouncement affects all entities that are party to leasing agreements. The ASU requires a lessee to recognize assets and liabilities on the balance sheet for leases. The ASU permits a lessee to elect to opt out of recognizing lease assets and lease liabilities for short-term leases with a term of twelve months or less. The Company has made this short-term lease election. Lessee’s recognition, measurement, and presentation of income, expenses and cash flows arising from a lease remain similar to current GAAP. Lessee and lessors have additional quantitative and qualitative disclosures to help users better understand the amount, timing, and uncertainty of cash flows arising from leases. ASU No. 2016-02 is effective for fiscal years beginning after December 31, 2018, and interim periods within those fiscal years. Lessees and lessors are required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842) - Targeted Improvements” to provide entities with relief from the costs of implementing certain aspects of the new leasing standard. Specifically, under the amendments in ASU No. 2018-11 entities may elect not to recast the comparative periods presented when transitioning to the new leasing standard, and lessors may elect not to separate lease and non-lease components when certain conditions are met. As the Company elected the transition option provided in ASU No. 2018-11, the modified retrospective approach was applied on January 1, 2019 (as opposed to January 1, 2017). The Company also elected certain practical expedients provided under ASU No. 2016-02 whereby we will not reassess (i) whether any expired or existing contracts are or contain leases, (ii) the lease classification for any expired or existing leases and (iii) initial direct costs for any existing leases. In December 2018, the FASB issued ASU No. 2018-20, “Leases (Topic 842): Narrow-Scope Improvements for Lessors,” which provides targeted improvements and clarification to guidance with FASB ASC Topic 842 specific to lessors. The amendments of ASU No. 2018-20 have the same effective date as ASU 2016-02 and may be applied either retrospectively or prospectively to all new and existing leases. The Company obtained a third-party software application which provides lease accounting under the guidelines of FASB ASC Topic 842. The amendments of ASU No. 2016-02 and subsequently issued ASUs, which provided additional guidance and clarifications to various aspects of FASB ASC Topic 842, became effective for the Company on January 1, 2019. At December 31, 2019, the Company reported increased assets of $12.2 million and increased liabilities of $13.0 million on its consolidated balance sheet as a result of recognizing right-of-use assets and lease liabilities related to non-cancellable operating lease agreements for office space. The adoption of this guidance did not have a material impact to its Consolidated Statements of Income or Cash Flows. See Note 7 – Leases for more information. In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities. This update shortens the amortization period of certain callable debt securities held at a premium to the earliest call date. The amendments in this update were effective for the Company on January 1, 2019. The amendments are applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption and the Company is required to provide change in accounting principle disclosures. The Company adopted the new guidance on January 1, 2019, and there was no material impact to the financial statements and no cumulative adjustments were made. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. The standard is the final guidance on the new current expected credit loss (“CECL”) model. The amendments in this update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to estimate future credit loss estimates. As CECL encompasses all financial assets carried at amortized cost, the requirement that reserves be established based on an organization’s reasonable and supportable estimate of expected credit losses extends to held-to-maturity debt securities. This update became effective for the Company on January 1, 2020. The Company is finalizing the economic forecasts and certain other key assumptions used in our CECL model and methodologies, and the required financial reporting disclosures are being further refined and internally validated. Internal controls related to CECL have been designed and are being evaluated; however, all internal controls related to CECL implementation are not operational. As of the implementation date, Management expects to recognize an increase of up to $12,000,000 to its allowance for credit losses for loans. The majority of this increase is related to the acquired loan portfolios. Once finalized, the cumulative-effect adjustment as a result of the adoption of this guidance will be recorded, net of tax, as an adjustment to retained earnings effective January 1, 2020. This estimate is subject to change based on continued refinement and validation of the model and methodologies as well as changes in forecasted macroeconomic conditions. Ongoing impacts of the CECL methodology will be dependent upon changes in economic conditions and forecasts, originated and acquired loan portfolio composition, portfolio duration, and other factors. Management does not expect a material allowance for credit losses to be recorded on its available-for-sale debt securities under the newly codified available-for-sale debt security impairment model, as the majority of these securities are U.S. government agency-backed securities for which the risk of loss is minimal. In January 2017, the FASB issued accounting standards ASU No. 2017-04, Simplifying the Test for Goodwill Impairment. The provisions of the update eliminate the existing second step of the goodwill impairment test which provides for the allocation of reporting unit fair value among existing assets and liabilities, with the net remaining amount representing the implied fair value of goodwill. In replacement of the existing goodwill impairment rule, the update will provide that impairment should be recognized as the excess of any of the reporting unit’s goodwill over the fair value of the reporting unit. Under the provisions of this update, the amount of the impairment is limited to the carrying value of the reporting unit’s goodwill. The amendments of the update became effective for the Company on January 1, 2020. The requirements of this update did not have a material impact on the Company’s financial position, results of operations or cash flows.

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (“AOCI”) (Tables)	12 Months Ended
	Dec. 31, 2019
Accumulated Other Comprehensive Income (“AOCI”)
Schedule of changes in AOCI by component	Year Ended December 31, 2019 and 2018 Unamortized Unrealized Unrealized Gain on Gains (Losses) on Available- Available- for-Sale Defined for-Sale Securities Benefit Securities Reclassified Pension and I/O to Held-to- Plan Strips Maturity Items Total (Dollars in thousands) Beginning balance January 1, 2019, net of taxes $ (5,007) $ 344 $ (7,718) $ (12,381) Other comprehensive income (loss) before reclassification, net of taxes 7,075 — (4,022) 3,053 Amounts reclassified from other comprehensive income (loss), net of taxes (466) (46) 62 (450) Net current period other comprehensive income (loss), net of taxes 6,609 (46) (3,960) 2,603 Ending balance December 31, 2019, net of taxes $ 1,602 $ 298 $ (11,678) $ (9,778) Beginning balance January 1, 2018, net of taxes $ (362) $ 375 $ (9,265) $ (9,252) Other comprehensive (loss) before reclassification, net of taxes (4,458) — 1,387 (3,071) Amounts reclassified from other comprehensive income (loss), net of taxes (187) (31) 160 (58) Net current period other comprehensive income (loss), net of taxes (4,645) (31) 1,547 (3,129) Ending balance December 31, 2018, net of taxes $ (5,007) $ 344 $ (7,718) $ (12,381)
Schedule of reclassifications out of AOCI into net income	Amounts Reclassified from AOCI(1) Year Ended December 31, Affected Line Item Where Details About AOCI Components 2019 2018 2017 Net Income is Presented (Dollars in thousands) Unrealized gains on available-for-sale securities and I/O strips $ 661 $ 266 $ (6) Gain (loss) on sales of securities (195) (79) 3 Income tax expense 466 187 (3) Net of tax Amortization of unrealized gain on securities available-for-sale that were reclassified to securities held-to-maturity 65 44 51 Interest income on taxable securities (19) (13) (22) Income tax expense 46 31 29 Net of tax Amortization of defined benefit pension plan items (1) Prior transition obligation 96 65 71 Actuarial losses (184) (292) (276) (88) (227) (205) Other noninterest expense 26 67 86 Income tax benefit (62) (160) (119) Net of tax Total reclassification from AOCI for the period $ 450 $ 58 $ (93) (1) Benefit Plans ).

Securities (Tables)

Securities (Tables)	12 Months Ended
	Dec. 31, 2019
Securities
Schedule of amortized cost and estimated fair value of securities	Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 283,598 $ 934 $ (171) $ 284,361 U.S. Treasury 118,939 1,525 — 120,464 Total $ 402,537 $ 2,459 $ (171) $ 404,825 Securities held-to-maturity: Agency mortgage-backed securities $ 285,344 $ 1,206 $ (968) $ 285,582 Municipals - exempt from Federal tax 81,216 1,313 (4) 82,525 Total $ 366,560 $ 2,519 $ (972) $ 368,107 Gross Gross Estimated Amortized Unrealized Unrealized Fair December 31, 2018 Cost Gains (Losses) Value (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 311,523 $ 98 $ (8,767) $ 302,854 U.S. Treasury 147,823 930 — 148,753 U.S. Government sponsored entities 7,433 4 (1) 7,436 Total $ 466,779 $ 1,032 $ (8,768) $ 459,043 Securities held-to-maturity: Agency mortgage-backed securities $ 291,241 $ 59 $ (9,153) $ 282,147 Municipals - exempt from Federal tax 85,957 312 (2,241) 84,028 Total $ 377,198 $ 371 $ (11,394) $ 366,175
Schedule of securities with unrealized losses	Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 100,816 $ (105) $ 27,534 $ (66) $ 128,350 $ (171) Total $ 100,816 $ (105) $ 27,534 $ (66) $ 128,350 $ (171) Securities held-to-maturity: Agency mortgage-backed securities $ 50,060 $ (178) $ 88,128 $ (790) $ 138,188 $ (968) Municipals - exempt from Federal tax 1,556 (4) — — 1,556 (4) Total $ 51,616 $ (182) $ 88,128 $ (790) $ 139,744 $ (972) Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2018 Value (Losses) Value (Losses) Value (Losses) (Dollars in thousands) Securities available-for-sale: Agency mortgage-backed securities $ 3,868 $ (21) $ 281,082 $ (8,746) $ 284,950 $ (8,767) U.S. Government sponsored entities 3,974 (1) — — 3,974 (1) Total $ 7,842 $ (22) $ 281,082 $ (8,746) $ 288,924 $ (8,768) Securities held-to-maturity: Agency mortgage-backed securities $ 16,088 $ (103) $ 255,917 $ (9,050) $ 272,005 $ (9,153) Municipals - exempt from Federal tax 5,019 (27) 57,301 (2,214) 62,320 (2,241) Total $ 21,107 $ (130) $ 313,218 $ (11,264) $ 334,325 $ (11,394)
Schedule of proceeds from sales of securities and the resulting gains and losses	2019 2018 2017 (Dollars in thousands) Proceeds $ 167,551 $ 94,291 $ 6,536 Gross gains 1,094 1,243 — Gross losses (433) (977) (6)
Schedule of amortized cost and estimated fair values of securities, by contractual maturity	Available-for-sale Amortized Estimated Cost Fair Value (Dollars in thousands) Due after 3 months through one year $ 54,649 55,085 Due after one through five years 64,290 65,379 Agency mortgage-backed securities 283,598 284,361 Total $ 402,537 $ 404,825 Held-to-maturity Amortized Estimated Cost Fair Value (Dollars in thousands) Due 3 months or less $ 125 125 Due after 3 months through one year 1,449 1,457 Due after one through five years 5,206 5,358 Due after five through ten years 31,698 32,279 Due after ten years 42,738 43,306 Agency mortgage-backed securities 285,344 285,582 Total $ 366,560 $ 368,107

Loans (Tables)

Loans (Tables)	12 Months Ended
	Dec. 31, 2019
Loans
Schedule of loans	December 31, December 31, 2019 2018 (Dollars in thousands) Loans held-for-investment: Commercial $ 631,547 $ 597,763 Real estate: CRE 1,510,592 994,067 Land and construction 150,634 122,358 Home equity 175,252 109,112 Residential mortgages 46,256 50,979 Consumer 19,882 12,453 Loans 2,534,163 1,886,732 Deferred loan fees, net (319) (327) Loans, net of deferred fees 2,533,844 1,886,405 Allowance for loan losses (23,285) (27,848) Loans, net $ 2,510,559 $ 1,858,557
Schedule of changes in allowance for loan losses	` Year Ended December 31, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 17,061 $ 10,671 $ 116 $ 27,848 Charge-offs (6,609) — (14) (6,623) Recoveries 1,045 169 — 1,214 Net (charge-offs) recoveries (5,564) 169 (14) (5,409) Provision (credit) for loan losses (1,044) 1,910 (20) 846 End of period balance $ 10,453 $ 12,750 $ 82 $ 23,285 Year Ended December 31, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,608 $ 8,950 $ 100 $ 19,658 Charge-offs (2,002) — (24) (2,026) Recoveries 2,645 150 — 2,795 Net (charge-offs) recoveries 643 150 (24) 769 Provision for loan losses 5,810 1,571 40 7,421 End of period balance $ 17,061 $ 10,671 $ 116 $ 27,848 Year Ended December 31, 2017 Commercial Real Estate Consumer Total (Dollars in thousands) Beginning of period balance $ 10,656 $ 8,327 $ 106 $ 19,089 Charge-offs (2,239) — — (2,239) Recoveries 1,585 1,124 — 2,709 Net (charge-offs) recoveries (654) 1,124 — 470 Provision (credit) for loan losses 606 (501) (6) 99 End of period balance $ 10,608 $ 8,950 $ 100 $ 19,658
Schedule of balance in allowance for loan losses and recorded investment in loans by portfolio segment, based on impairment method	December 31, 2019 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 1,835 $ — $ — $ 1,835 Collectively evaluated for impairment 8,618 12,750 82 21,450 Total allowance balance $ 10,453 $ 12,750 $ 82 $ 23,285 Loans: Individually evaluated for impairment $ 4,810 $ 5,454 $ — $ 10,264 Collectively evaluated for impairment 626,737 1,877,280 19,882 2,523,899 Total loan balance $ 631,547 $ 1,882,734 $ 19,882 $ 2,534,163 December 31, 2018 Commercial Real Estate Consumer Total (Dollars in thousands) Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ 6,944 $ — $ — $ 6,944 Collectively evaluated for impairment 10,117 10,671 116 20,904 Total allowance balance $ 17,061 $ 10,671 $ 116 $ 27,848 Loans: Individually evaluated for impairment $ 9,495 $ 5,645 $ — $ 15,140 Collectively evaluated for impairment 588,268 1,270,871 12,453 1,871,592 Total loan balance $ 597,763 $ 1,276,516 $ 12,453 $ 1,886,732
Schedule of loans held-for-investment individually evaluated for impairment by class of loans	December 31, 2019 December 31, 2018 Allowance Allowance Unpaid for Loan Unpaid for Loan Principal Recorded Losses Principal Recorded Losses Balance Investment Allocated Balance Investment Allocated (Dollars in thousands) With no related allowance recorded: Commercial $ 2,113 $ 2,113 $ — $ 1,849 $ 1,849 $ — Real estate: CRE 5,094 5,094 — 5,094 5,094 — Home Equity 360 360 — 551 551 — Total with no related allowance recorded 7,567 7,567 — 7,494 7,494 — With an allowance recorded: Commercial 2,697 2,697 1,835 7,646 7,646 6,944 Total with an allowance recorded 2,697 2,697 1,835 7,646 7,646 6,944 Total $ 10,264 $ 10,264 $ 1,835 $ 15,140 $ 15,140 $ 6,944
Schedule of average impaired loans with interest recognized and cash-basis interest earned on impaired loans	Year Ended December 31, 2019 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 8,048 $ 6,433 $ — $ 440 $ — $ 14,921 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest recognized $ — $ — $ — $ — $ — $ — Year Ended December 31, 2018 Real Estate Land and Home Commercial CRE Construction Equity Consumer Total (Dollars in thousands) Average of impaired loans during the period $ 10,744 $ 3,507 $ 24 $ 487 $ — $ 14,762 Interest income during impairment $ — $ — $ — $ — $ — $ — Cash-basis interest recognized $ — $ — $ — $ — $ — $ —
Schedule of nonperforming loans	2019 2018 (Dollars in thousands) Nonaccrual loans - held-for-investment $ 8,675 $ 13,699 Restructured and loans over 90 days past due and still accruing 1,153 1,188 Total nonperforming loans 9,828 14,887 Other restructured loans 436 253 Total impaired loans $ 10,264 $ 15,140
Schedule of nonperforming loans by class	December 31, 2019 December 31, 2018 Restructured Restructured and Loans and Loans over 90 Days over 90 Days Past Due Past Due and Still and Still Nonaccrual Accruing Total Nonaccrual Accruing Total (Dollars in thousands) Commercial $ 3,444 $ 1,153 $ 4,597 $ 8,279 $ 963 $ 9,242 Real estate: CRE 5,094 — 5,094 5,094 — 5,094 Home equity 137 — 137 326 225 551 Total $ 8,675 $ 1,153 $ 9,828 $ 13,699 $ 1,188 $ 14,887
Schedule of aging of past due loans by class of loans	The following table presents the aging of past due loans at year-end by class of loans: December 31, 2019 30 - 59 60 - 89 90 Days or Days Days Greater Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (Dollars in thousands) Commercial $ 4,770 $ 2,097 $ 3,217 $ 10,084 $ 621,463 $ 631,547 Real estate: CRE — — 5,094 5,094 1,505,498 1,510,592 Land and construction — — — — 150,634 150,634 Home equity — 137 — 137 175,115 175,252 Residential mortgages — — — — 46,256 46,256 Consumer — — — — 19,882 19,882 Total $ 4,770 $ 2,234 $ 8,311 $ 15,315 $ 2,518,848 $ 2,534,163 December 31, 2018 30 - 59 60 - 89 90 Days or Days Days Greater Total Loans Not Past Due Past Due Past Due Past Due Past Due Total (Dollars in thousands) Commercial $ 5,698 $ 1,916 $ 1,258 $ 8,872 $ 588,891 $ 597,763 Real estate: CRE — — — — 994,067 994,067 Land and construction — — — — 122,358 122,358 Home equity — — — — 109,112 109,112 Residential mortgages — — — — 50,979 50,979 Consumer 1 — — 1 12,452 12,453 Total $ 5,699 $ 1,916 $ 1,258 $ 8,873 $ 1,877,859 $ 1,886,732
Summary of loan portfolio by loan type and credit quality classification	December 31, 2019 December 31, 2018 Nonclassified Classified Total Nonclassified Classified Total (Dollars in thousands) Commercial $ 623,768 7,779 $ 631,547 $ 584,845 $ 12,918 $ 597,763 Real estate: CRE 1,492,126 18,466 1,510,592 985,193 8,874 994,067 Land and construction 147,553 3,081 150,634 122,358 — 122,358 Home equity 171,999 3,253 175,252 107,495 1,617 109,112 Residential mortgages 46,256 — 46,256 50,979 — 50,979 Consumer 19,882 — 19,882 12,453 — 12,453 Total $ 2,501,584 $ 32,579 $ 2,534,163 $ 1,863,323 $ 23,409 $ 1,886,732
Schedule of loans by class modified as troubled debt restructurings	During the Year Ended December 31, 2019 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 3 $ 591 $ 591 Total 3 $ 591 $ 591 During the Year Ended December 31, 2018 Pre-modification Post-modification Number Outstanding Outstanding of Recorded Recorded Troubled Debt Restructurings: Contracts Investment Investment (Dollars in thousands) Commercial 2 $ 112 $ 112 Equity 1 224 224 Total 3 $ 336 $ 336
Schedule of loans outstanding to related parties	2019 2018 (Dollars in thousands) Beginning of year balance $ — $ 531 Repayment on loans during the year — (531) End of year balance $ — $ —

Loan Servicing (Tables)

Loan Servicing (Tables)	12 Months Ended
	Dec. 31, 2019
Loan Servicing
Schedule of activity for loan servicing rights	2019 2018 2017 (Dollars in thousands) Beginning of year balance $ 871 $ 1,373 $ 1,854 Additions 157 200 278 Amortization (445) (702) (759) End of year balance $ 583 $ 871 $ 1,373
Schedule of activity for IO strip receivables	2019 2018 2017 (Dollars in thousands) Beginning of year balance $ 568 $ 968 $ 1,067 Unrealized loss (65) (400) (99) End of year balance $ 503 $ 568 $ 968

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2019
Premises and Equipment
Schedule of premises and equipment	2019 2018 (Dollars in thousands) Building $ 3,508 $ 3,508 Land 2,900 2,900 Furniture and equipment 10,067 9,584 Leasehold improvements 7,372 5,645 23,847 21,637 Accumulated depreciation and amortization (15,597) (14,500) Premises and equipment, net $ 8,250 $ 7,137

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2019
Leases
Schedule of leases	December 31, 2019 (Dollars in thousands) Operating Lease Cost (Cost resulting from lease payments) $ 1,490 Operating Lease - Operating Cash Flows (Fixed Payments) $ 1,519 Operating Lease - ROU assets $ 12,173 Operating Lease - Liabilities $ 13,032 Weighted Average Lease Term - Operating Leases 4.79 years Weighted Average Discount Rate - Operating Leases
Schedule of maturity analysis shows the undiscounted cash flows due on the Company’s operating lease liabilities	(Dollars in thousands) 2020 $ 3,812 2021 2,852 2022 2,578 2023 1,855 2024 1,474 Thereafter 1,618 Total undiscounted cash flows 14,189 Discount on cash flows (1,157) Total lease liability $ 13,032

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
	Dec. 31, 2019
Business Acquisition [Line Items]
Summary of consideration paid	(Dollars in thousands) Issuance of 15,684,064 shares of common stock to Presidio shareholders and holders of restricted stock (stock price = $11.36 on October 11, 2019) $ 178,171 Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options 7,426 Cash paid for fractional shares 1 Total consideration $ 185,598
Schedule of unaudited pro forma combined consolidated financial statements and related adjustments	For the Year Ended UNAUDITED December 31, 2019 December 31, 2018 (Dollars in thousands, except per share amounts) Net interest income $ 163,555 $ 160,044 Provision (credit) for loan losses 870 7,694 Noninterest income 11,291 10,795 Noninterest expense 92,709 97,563 Income before income taxes 81,268 65,582 Income tax expense 23,730 17,549 Net income $ 57,538 $ 48,033 Net income per share - basic $ 0.98 $ 0.84 Net income per share - diluted $ 0.96 $ 0.83
Summary of pre-tax merger-related costs	For the Year Ended December 31, December 31, December 31, 2019 2018 2017 (Dollars in thousands) Salaries and employee benefits $ 6,580 $ 3,569 $ — Other 4,500 5,598 671 Total merger-related costs $ 11,080 $ 9,167 $ 671
Presidio bank
Business Acquisition [Line Items]
Schedule of recognized identified assets acquired and liabilities assumed	As As Recorded Fair Recorded by Value at Presidio Adjustments Acquisition (Dollars in thousands) Assets acquired: Cash and cash equivalents $ 117,989 $ (1) (a) $ 117,988 Securities available-for-sale 44,647 422 (b) 45,069 Securities held-to-maturity 463 — 463 Loans 698,493 (12,529) (c) 685,964 Allowance for loan losses (7,463) 7,463 (d) — Premises and equipment, net 1,756 — 1,756 Other intangible assets — 11,147 (e) 11,147 Other assets, net 43,539 (1,378) (f) 42,161 Total assets acquired $ 899,424 $ 5,124 904,548 Liabilities assumed: Deposits $ 774,260 $ (1) (g) 774,259 Subordinated Debt 10,000 — (h) 10,000 Other borrowings 442 — 442 Other liabilities 17,916 — 17,916 Total liabilities assumed $ 802,618 $ (1) 802,617 Net assets acquired 101,931 Purchase price 185,598 Goodwill recorded in the merger $ 83,667 Explanation of certain fair value related adjustments for the Presidio merger: (a) Represents cash paid for fractional shares in the transaction. (b) Represents the fair value adjustment on investment securities available-for-sale. (c) Represents the fair value adjustment to the net book value of loans includes an interest rate mark and credit mark adjustment. (d) Represents the elimination of Presidio’s allowance for loan losses. (e) Represents intangible assets recorded to reflect the fair value of core deposits and an above market lease. The core deposit asset was recorded as an identifiable intangible asset and is amortized on an accelerated basis over the estimated average life of the deposit base. The above market lease liability will be accreted on the straight line method over 60 months. (f) Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded. (g) Represents the fair value adjustment on time deposits, which was amortized as interest expense. (h) The Company acquired $10,000,000 of subordinated debt from the Presidio transaction. The Presidio subordinated debt was redeemed on December 19, 2019.

Goodwill and Other Intangible_2

Goodwill and Other Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2019
Goodwill and Other Intangible Assets
Schedule of carrying amount of goodwill by segment	December 31, 2019 2018 (Dollars in thousands) Banking $ 154,376 $ 70,709 Factoring 13,044 13,044 Total Goodwill $ 167,420 $ 83,753
Schedule of estimated amortization expense	United United Bay View Funding Presidio Presidio American American Tri-Valley Tri-Valley Focus Customer & Core Above Core Below Core Below Core Brokered Total Deposit Market Deposit Market Deposit Market Deposit Relationship Amortization Year Intangible Lease Intangible Lease Intangible Lease Intangible Intangible Expense (Dollars in thousands) 2020 $ 1,719 (20) $ 665 $ 235 $ 208 $ 18 $ 716 $ 190 $ 3,731 2021 1,447 (20) 602 — 184 18 596 190 3,017 2022 1,225 (20) 553 — 167 18 502 190 2,635 2023 1,118 (20) 521 — 158 18 420 190 2,405 2024 1,026 (14) 499 — 152 18 347 159 2,187 Thereafter 4,181 — 1,520 — 451 88 200 — 6,440 $ 10,716 $ (94) $ 4,360 $ 235 $ 1,320 $ 178 $ 2,781 $ 919 $ 20,415

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2019
Deposits.
Schedule of maturities of time deposits including brokered deposits	(Dollars in thousands) 2020 $ 156,141 2021 9,658 2022 2,115 2023 54 2024 66 Total $ 168,034

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2019
Income Taxes
Schedule of income tax (benefit)	2019 2018 2017 (Dollars in thousands) Currently payable tax: Federal $ 7,631 $ 9,187 $ 12,948 State 4,689 5,416 4,653 Total currently payable 12,320 14,603 17,601 Deferred tax expense (benefit): Federal 2,200 (1,133) 1,193 Due to enactment of Tax Reform — — 7,103 State 1,331 (146) 574 Total deferred tax 3,531 (1,279) 8,870 Income tax expense $ 15,851 $ 13,324 $ 26,471
Schedule of effective tax rate differs from the federal statutory rate	2019 2018 2017 Statutory Federal income tax rate % 21.0 % 35.0 % State income taxes, net of federal tax benefit % 8.5 % 6.8 % Low income housing credits, net of investment losses % (0.8) % (0.5) % Increase in cash surrender value of life insurance % (0.5) % (1.2) % Stock option/restricted stock windfall tax benefit % (0.9) % (0.3) % Non-taxable interest income % (0.9) % (1.5) % Split-dollar term insurance % 0.1 % 0.1 % Merger cost % 0.5 % — % Due to enactment of Tax Reform — % — % 14.1 % Other, net % 0.4 % 0.1 % Effective tax rate % % %
Schedule of deferred tax assets and liabilities	2019 2018 (Dollars in thousands) Deferred tax assets: Defined postretirement benefit obligation $ 9,901 $ 7,877 Allowance for loan losses 7,231 7,697 Federal net operating loss carryforwards 3,662 5,093 Accrued expenses 2,562 1,939 Lease accounting 1,647 — Stock compensation 1,636 1,244 California net operating loss carryforwards 1,489 2,128 State income taxes 954 1,117 Premises and equipment 695 642 Split-dollar life insurance benefit plan 75 80 Nonaccrual interest 61 55 Tax credit carryforwards 57 71 Securities available-for-sale — 2,184 Other 654 716 Total deferred tax assets 30,624 30,843 Deferred tax liabilities: Intangible liabilities (1,321) (1,671) Loan fees (1,842) (1,089) Prepaid expenses (289) (554) Securities available-for-sale (772) — Lease accounting (1,647) — I/O strips (144) (163) FHLB stock (177) (174) Other (130) (103) Total deferred tax liabilities (6,322) (3,754) Net deferred tax assets $ 24,302 $ 27,089
Summary of carrying amount of low income tax housing investment	December 31, December 31, 2019 2018 (Dollars in thousands) Low income housing investments $ 6,126 $ 3,172 Future commitments $ 625 $ 273

Equity Plan (Tables)

Equity Plan (Tables)	12 Months Ended
	Dec. 31, 2019
Equity Plan
Schedule of stock option activity under the equity plans	Weighted Weighted Average Average Remaining Aggregate Number Exercise Contractual Intrinsic Total Stock Options of Shares Price Life (Years) Value Outstanding at January 1, 2019 1,570,603 $ 10.76 Granted 299,500 $ 12.16 Assumed Presidio Bank stock options exchanged for Heritage Commerce Corp stock options 1,176,757 $ 5.05 Exercised (266,689) $ 6.10 Forfeited or expired (67,325) $ 14.31 Outstanding at December 31, 2019 2,712,846 $ 8.80 5.62 $ 12,369,413 Vested or expected to vest 2,550,075 5.62 $ 11,627,248 Exercisable at December 31, 2019 2,206,775 4.93 $ 12,151,054
Schedule of information related to the equity Plan	December 31, 2019 2018 2017 Intrinsic value of options exercised $ 1,618,615 $ 1,844,909 $ 1,342,794 Cash received from option exercise $ 1,626,113 $ 2,667,305 $ 1,368,673 Tax benefit realized from option exercises $ 258,037 $ 534,638 $ 547,817 Weighted average fair value of options granted $ 1.91 $ 3.03 $ 2.66
Schedule of assumptions used to estimate the fair value of each option grant on the date of grant	December 31, 2019 2018 2017 Expected life in months(1) 72 72 Volatility(1) 24 % 21 % 24 % Weighted average risk-free interest rate(2) 2.23 % 2.88 % 1.94 % Expected dividends(3) 3.95 % 2.64 % 2.78 % (1) (2) (3)
Schedule of restricted stock activity under the equity plans	Weighted Average Grant Number Date Fair Total Restricted Stock Award of Shares Value Nonvested shares at January 1, 2019 193,298 $ 11.04 Granted 134,653 $ 12.16 Vested (82,498) $ 12.37 Forfeited or expired (6,000) $ 17.11 Nonvested shares at December 31, 2019 239,453 $ 11.23

Benefit Plans (Tables)

Benefit Plans (Tables)	12 Months Ended
	Dec. 31, 2019
Supplemental Retirement Plan
Benefit plans
Schedule of change in projected benefit obligation	2019 2018 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 26,781 $ 28,510 Projected benefit obligation of SERP agreements acquired from Presidio 2,541 — Service cost 263 249 Actuarial loss (gain) 4,182 (1,885) Interest cost 1,059 947 Benefits paid (1,137) (1,040) Projected benefit obligation at end of year $ 33,689 $ 26,781 Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 9,670 $ 5,672
Schedule of weighted-average assumptions used to determine the benefit obligation	2019 2018 Discount rate 3.01 % 4.03 % Rate of compensation increase N/A N/A
Schedule of estimated benefit payments over the next ten years, which reflect anticipated future events, service and other assumptions	Estimated Benefit Year Payments (Dollars in thousands) 2020 $ 1,509 2021 1,717 2022 1,863 2023 1,974 2024 2,011 2025 to 2029 11,366 $ 20,440
Schedule of components of net periodic benefit cost	2019 2018 (Dollars in thousands) Components of net periodic benefit cost: Service cost $ 263 $ 249 Interest cost 1,059 947 Amortization of net actuarial loss 184 292 Accelerated benefits for Presidio SERP agreements due to change in control 1,465 — Net periodic benefit cost $ 2,971 $ 1,488 Amount recognized in other comprehensive income $ 2,847 $ 1,577
Schedule of assumption used to determine the net periodic benefit cost	2019 2018 Discount rate 4.03 % 3.38 % Rate of compensation increase N/A N/A
Split-Dollar Life Insurance Benefit Plan
Benefit plans
Schedule of change in projected benefit obligation	December 31, December 31, 2019 2018 (Dollars in thousands) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 6,903 $ 6,711 Interest cost 278 227 Actuarial loss (gain) 1,017 (35) Projected benefit obligation at end of period $ 8,198 $ 6,903
Schedule of amounts recognized in accumulated other comprehensive loss	December 31, December 31, 2019 2018 (Dollars in thousands) Net actuarial loss $ 3,776 $ 2,573 Prior transition obligation 1,059 1,149 Accumulated other comprehensive loss $ 4,835 $ 3,722
Schedule of weighted-average assumptions used to determine the benefit obligation	2019 2018 Discount rate 3.01 % 4.03 %
Schedule of components of net periodic benefit cost	2019 2018 (Dollars in thousands) Amortization of prior transition obligation $ (96) $ (65) Interest cost 278 227 Net periodic benefit cost $ 182 $ 162 Amount recognized in other comprehensive income $ 1,113 $ (30)
Schedule of assumption used to determine the net periodic benefit cost	2019 2018 Discount rate 4.03 % 3.38 %

Fair Value (Tables)

Fair Value (Tables)	12 Months Ended
	Dec. 31, 2019
Fair Value
Schedule of financial assets and liabilities measured on a recurring basis	Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at December 31, 2019 Available-for-sale securities: Agency mortgage-backed securities $ 284,361 — $ 284,361 — U.S. Treasury 120,464 120,464 — — I/O strip receivables 503 — 503 — Assets at December 31, 2018 Available-for-sale securities: Agency mortgage-backed securities $ 302,854 — $ 302,854 — U.S. Treasury 148,753 148,753 — — U.S. Government sponsored entities 7,436 — 7,436 — I/O strip receivables 568 — 568 —
Schedule of assets and liabilities measured on a non-recurring basis	Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Balance (Level 1) (Level 2) (Level 3) (Dollars in thousands) Assets at December 31, 2019 Impaired loans - held-for-investment: Commercial $ 862 — — $ 862 $ 862 — — $ 862 Assets at December 31, 2018 Impaired loans - held-for-investment: Commercial $ 702 — — $ 702 $ 702 — — $ 702
Schedule of impaired loans held-for-investment and impaired loans held-for-investment carried at fair value	December 31, 2019 December 31, 2018 (Dollars in thousands) Impaired loans held-for-investment: Book value of impaired loans held-for-investment carried at fair value $ 2,697 $ 7,646 Book value of impaired loans held-for-investment carried at cost 7,567 7,494 Total impaired loans held-for-investment $ 10,264 $ 15,140 Impaired loans held-for-investment carried at fair value: Book value of impaired loans held-for-investment carried at fair value $ 2,697 $ 7,646 Specific valuation allowance (1,835) (6,944) Impaired loans held-for-investment carried at fair value, net $ 862 $ 702
Schedule of quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis	December 31, 2019 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 862 Market Approach Discount adjustment for differences between comparable sales Less than 1% December 31, 2018 Valuation Unobservable Range Fair Value Techniques Inputs (Weighted Average) (Dollars in thousands) Impaired loans - held-for-investment: Commercial $ 702 Market Approach Discount adjustment for differences between comparable sales 0% to 1%
Schedule of carrying amounts and estimated fair values of financial instruments	The carrying amounts and estimated fair values of financial instruments at December 31, 2019 are as follows: Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 457,370 $ 457,370 $ — $ — $ 457,370 Securities available-for-sale 404,825 120,464 284,361 — 404,825 Securities held-to-maturity 366,560 — 368,107 — 368,107 Loans (including loans held-for-sale), net 2,511,611 — 1,052 2,512,277 2,513,329 FHLB stock, FRB stock, and other investments 29,842 — — — N/A Accrued interest receivable 10,915 446 2,218 8,251 10,915 I/O strips receivables 503 — 503 — 503 Liabilities: Time deposits $ 168,034 $ — $ 158,704 $ — $ 158,704 Other deposits 3,246,734 — 3,246,734 — 3,246,734 Subordinated debt 39,554 — 40,404 — 40,404 Accrued interest payable 707 — 707 — 707 The carrying amounts and estimated fair values of financial instruments at December 31, 2018 are as follows: Estimated Fair Value Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Amounts (Level 1) (Level 2) (Level 3) Total (Dollars in thousands) Assets: Cash and cash equivalents $ 164,568 $ 164,568 $ — $ — $ 164,568 Securities available-for-sale 459,043 148,753 310,290 — 459,043 Securities held-to-maturity 377,198 — 366,175 — 366,175 Loans (including loans held-for-sale), net 1,861,206 — 2,649 1,826,654 1,829,303 FHLB stock, FRB stock, and other investments 25,216 — — — N/A Accrued interest receivable 9,577 597 2,274 6,706 9,577 I/O strips receivables 568 — 568 — 568 Liabilities: Time deposits $ 147,560 $ — $ 147,916 $ — $ 147,916 Other deposits 2,489,972 — 2,489,972 — 2,489,972 Subordinated debt 39,369 — 38,969 — 38,969 Accrued interest payable 497 — 497 — 497

Commitments and Contingencies (

Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2019
Commitments and Contingencies
Schedule of commitments to extend credit	December 31, 2019 2018 Fixed Variable Fixed Variable Rate Rate Total Rate Rate Total (Dollars in thousands) Unused lines of credit and commitments to make loans $ 147,372 $ 951,206 $ 1,098,578 $ 130,871 $ 593,839 $ 724,710 Standby letters of credit 11,445 10,615 22,060 2,770 12,899 15,669 $ 158,817 $ 961,821 $ 1,120,638 $ 133,641 $ 606,738 $ 740,379

Shareholders' Equity and Earn_2

Shareholders' Equity and Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2019
Shareholders' Equity and Earnings Per Share.
Schedule of reconciliation of factors used in computing basic and diluted earnings per common share	Year Ended December 31, 2019 2018 2017 (Dollars in thousands, except per share amounts) Net income $ 40,461 $ 35,331 $ $ 23,828 Weighted average common shares outstanding for basic earnings per common share 46,684,384 41,469,211 38,095,250 Dilutive potential common shares 1,221,845 713,728 515,565 Shares used in computing diluted earnings per common share 47,906,229 42,182,939 38,610,815 Basic earnings per share $ $ $ 0.63 Diluted earnings per share $ $ $ 0.62

Capital Requirements (Tables)

Capital Requirements (Tables)	12 Months Ended
	Dec. 31, 2019
Capital Requirements
Schedule of actual capital and required amounts and ratios	Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2019 Total Capital $ 457,158 14.6 % $ 329,306 10.5 % (to risk-weighted assets) Tier 1 Capital $ 393,432 12.5 % $ 266,581 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 393,432 12.5 % $ 219,538 7.0 % (to risk-weighted assets) Tier 1 Capital $ 393,432 9.7 % $ 161,677 4.0 % (to average assets) (1) Required For Capital Adequacy Purposes Actual Under Basel III Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2018 Total Capital $ 344,597 15.0 % $ 227,514 9.875 % (to risk-weighted assets) Tier 1 Capital $ 276,675 12.0 % $ 181,435 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 276,675 12.0 % $ 146,876 6.375 % (to risk-weighted assets) Tier 1 Capital $ 276,675 8.9 % $ 124,726 4.000 % (to average assets) (1)
HBC (Wholly-owned Subsidiary)
Capital Requirements
Schedule of actual capital and required amounts and ratios	Required For Capital To Be Well-Capitalized Adequacy Under Basel III PCA Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2019 Total Capital $ 435,757 13.9 % $ 313,485 10.0 % $ 329,159 10.5 % (to risk-weighted assets) Tier 1 Capital $ 411,585 13.1 % $ 250,788 8.0 % $ 266,462 8.5 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 411,585 13.1 % $ 203,765 6.5 % $ 219,439 7.0 % (to risk-weighted assets) Tier 1 Capital $ 411,585 10.2 % $ 202,013 5.0 % $ 161,611 4.0 % (to average assets) (1) Required For Capital To Be Well-Capitalized Adequacy Under Basel III PCA Regulatory Purposes Actual Requirements Under Basel III Amount Ratio Amount Ratio Amount Ratio (1) (Dollars in thousands) As of December 31, 2018 Total Capital $ 322,283 14.0 % $ 230,275 10.0 % $ 227,397 9.875 % (to risk-weighted assets) Tier 1 Capital $ 293,730 12.8 % $ 184,220 8.0 % $ 181,342 7.875 % (to risk-weighted assets) Common Equity Tier 1 Capital $ 293,730 12.8 % $ 149,679 6.5 % $ 146,800 6.375 % (to risk-weighted assets) Tier 1 Capital $ 293,730 9.4 % $ 155,832 5.0 % $ 124,666 4.000 % (to average assets) (1)

Revenue Recognition (Tables)

Revenue Recognition (Tables)	12 Months Ended
	Dec. 31, 2019
Revenue Recognition
Schedule of noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606	Year Ended December 31, 2019 2018 (Dollars in thousands) Noninterest Income In-scope of Topic 606: Service charges and fees on deposit accounts $ 4,510 $ 4,113 Noninterest Income Out-of-scope of Topic 606 5,734 5,461 Total noninterest income $ 10,244 $ 9,574

Noninterest Expense (Tables)

Noninterest Expense (Tables)	12 Months Ended
	Dec. 31, 2019
Noninterest Expense
Schedule of noninterest expense	Year Ended December 31, 2019 2018 2017 (Dollars in thousands) Salaries and employee benefits $ 50,754 $ 43,762 $ 35,719 Occupancy and equipment 6,647 5,411 4,578 Professional fees 3,259 1,969 2,982 Data processing 2,890 1,978 1,483 Amortization of intangible assets 2,739 1,943 1,361 Software subscriptions 2,397 2,343 1,831 Insurance expense 1,864 1,685 1,529 Other 14,348 16,430 11,255 Total noninterest expense $ 84,898 $ 75,521 $ 60,738 The following table presents the merger-related costs by category for the periods indicated: For the Year Ended December 31, December 31, December 31, 2019 2018 2017 (Dollars in thousands) Salaries and employee benefits $ 6,580 $ 3,569 $ — Other 4,500 5,598 671 Total merger-related costs $ 11,080 $ 9,167 $ 671

Business Segment Information (T

Business Segment Information (Tables)	12 Months Ended
	Dec. 31, 2019
Business Segment Information
Schedule of information by operating segment	Year Ended December 31, 2019 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 130,971 $ 11,688 $ 142,659 Intersegment interest allocations 1,182 (1,182) — Total interest expense 10,847 — 10,847 Net interest income 121,306 10,506 131,812 Provision for loan losses 517 329 846 Net interest income after provision 120,789 10,177 130,966 Noninterest income 9,643 601 10,244 Noninterest expense (2) 78,159 6,739 84,898 Intersegment expense allocations 547 (547) — Income before income taxes 52,820 3,492 56,312 Income tax expense 14,819 1,032 15,851 Net income $ 38,001 $ 2,460 $ 40,461 Total assets $ 4,045,801 $ 63,662 $ 4,109,463 Loans, net of deferred fees $ 2,487,864 $ 45,980 $ 2,533,844 Goodwill $ 154,376 $ 13,044 $ 167,420 (1) (2) Year Ended December 31, 2018 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 115,147 $ 14,698 $ 129,845 Intersegment interest allocations 1,856 (1,856) — Total interest expense 7,822 — 7,822 Net interest income 109,181 12,842 122,023 Provision for loan losses 7,224 197 7,421 Net interest income after provision 101,957 12,645 114,602 Noninterest income 8,662 912 9,574 Noninterest expense (2) 69,164 6,357 75,521 Intersegment expense allocations 753 (753) — Income before income taxes 42,208 6,447 48,655 Income tax expense 11,418 1,906 13,324 Net income $ 30,790 $ 4,541 $ 35,331 Total assets $ 3,028,721 $ 67,841 $ 3,096,562 Loans, net of deferred fees $ 1,832,815 $ 53,590 $ 1,886,405 Goodwill $ 70,709 $ 13,044 $ 83,753 (1) Includes the holding company’s results of operations. (2) The banking segment’s noninterest expense includes acquisition costs of $9,167,000. Year Ended December 31, 2017 Banking (1) Factoring Consolidated (Dollars in thousands) Interest income $ 95,027 $ 11,884 $ 106,911 Intersegment interest allocations 1,126 (1,126) — Total interest expense 5,387 — 5,387 Net interest income 90,766 10,758 101,524 Provision (credit) for loan losses 102 (3) 99 Net interest income after provision 90,664 10,761 101,425 Noninterest income 8,559 1,053 9,612 Noninterest expense (2) 53,860 6,878 60,738 Intersegment expense allocations 528 (528) — Income before income taxes 45,891 4,408 50,299 Income tax expense (3) 24,266 2,205 26,471 Net income $ 21,625 $ 2,203 $ 23,828 Total assets $ 2,780,286 $ 63,166 $ 2,843,452 Loans, net of deferred fees $ 1,533,841 $ 48,826 $ 1,582,667 Goodwill $ 32,620 $ 13,044 $ 45,664 (1) Includes the holding company’s results of operations. (2) (3)

Parent Company only Condensed_2

Parent Company only Condensed Financial Information (Tables) - HCC (Parent)	12 Months Ended
	Dec. 31, 2019
Condensed financial statements
Schedule of condensed balance sheets	Condensed Balance Sheets December 31, 2019 2018 (Dollars in thousands) Assets Cash and cash equivalents $ 20,260 $ 21,358 Investment in subsidiary bank 594,868 384,516 Other assets 1,761 1,194 Total assets $ 616,889 $ 407,068 Liabilities and Shareholders' Equity Subordinated debt, net of issuance costs 39,554 39,369 Other liabilities 627 233 Shareholders' equity 576,708 367,466 Total liabilities and shareholders' equity $ 616,889 $ 407,068
Schedule of condensed statements of income	Condensed Statements of Operations Year Ended December 31, 2019 2018 2017 (Dollars in thousands) Dividend from subsidiary bank $ 22,500 $ 17,000 $ 16,000 Other income 121 — 114 Interest expense (2,314) (2,315) (1,394) Other expenses (3,084) (3,030) (2,270) Income before income taxes and equity in net income of subsidiary bank 17,223 11,655 12,450 Equity in undistributed net income of subsidiary bank 21,757 22,161 10,078 Income tax benefit 1,481 1,515 1,300 Net income $ 40,461 $ 35,331 $ 23,828
Schedule of condensed statements of cash flows	Condensed Statements of Cash Flows Year Ended December 31, 2019 2018 2017 (Dollars in thousands) Cash flows from operating activities: Net Income $ 40,461 $ 35,331 $ 23,828 Adjustments to reconcile net income to net cash provided by operations: Amortization of restricted stock awards, net 1,283 1,109 912 Equity in undistributed net income of subsidiary bank (21,757) (22,161) (10,078) Net change in other assets and liabilities 12 (64) 224 Net cash provided by operating activities 19,999 14,215 14,886 Cash flows from financing activities: Equity investment in subsidiary bank — — (20,000) Payment of cash dividends (22,723) (18,464) (15,238) Proceeds from issuance of subordinated debt, net of issuance costs — — 39,073 Proceeds from exercise of stock options 1,626 2,667 1,368 Net cash provided by (used in) financing activities (21,097) (15,797) 5,203 Net increase (decrease) in cash and cash equivalents (1,098) (1,582) 20,089 Cash and cash equivalents, beginning of year 21,358 22,940 2,851 Cash and cash equivalents, end of year $ 20,260 $ 21,358 $ 22,940

Quarterly Financial Data (Una_2

Quarterly Financial Data (Unaudited) (Tables)	12 Months Ended
	Dec. 31, 2019
Quarterly Financial Data (Unaudited)
Schedule of the Company's selected unaudited quarterly financial data	Quarter Ended 12/31/2019 9/30/2019 6/30/2019 3/31/2019 (Dollars in thousands, except per share amounts) Interest income $ 42,471 $ 33,250 $ 33,489 $ 33,449 Interest expense 3,242 2,625 2,573 2,407 Net interest income 39,229 30,625 30,916 31,042 Provision (credit) for loan losses 3,223 (576) (740) (1,061) Net interest income after provision for loan losses 36,006 31,201 31,656 32,103 Noninterest income 2,393 2,618 2,765 2,468 Noninterest expense (1) 30,626 17,909 18,445 17,918 Income before income taxes 7,773 15,910 15,976 16,653 Income tax expense 2,088 4,633 4,623 4,507 Net income $ 5,685 $ 11,277 $ 11,353 $ 12,146 Earnings per common share Basic $ 0.10 $ 0.26 $ 0.26 $ 0.28 Diluted $ 0.10 $ 0.26 $ 0.26 $ 0.28 (1) Includes $9,879,000, $661,000, and $540,000 pre-tax acquisition costs in the fourth, third, and second quarters of 2019, respectively, related to the Presidio merger. Quarter Ended 12/31/2018 9/30/2018 6/30/2018 3/31/2018 (Dollars in thousands, except per share amounts) Interest income $ 35,378 $ 34,610 $ 31,980 $ 27,877 Interest expense 2,318 2,159 1,816 1,529 Net interest income 33,060 32,451 30,164 26,348 Provision for loan losses 142 (425) 7,198 506 Net interest income after provision for loan losses 32,918 32,876 22,966 25,842 Noninterest income 2,393 2,206 2,780 2,195 Noninterest expense (1) 16,941 17,728 24,862 15,990 Income before income taxes 18,370 17,354 884 12,047 Income tax expense 5,138 4,979 (31) 3,238 Net income $ 13,232 $ 12,375 $ 915 $ 8,809 Earnings per common share Basic $ 0.31 $ 0.29 $ 0.02 $ 0.23 Diluted $ 0.30 $ 0.28 $ 0.02 $ 0.23 (1) Includes $139,000, $199,000, $8,214,000, and $615,000 pre-tax acquisition costs in the fourth, third, second and first quarters of 2018, respectively, related to the Tri-Valley and United American mergers.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies - Cash and Cash Equivalents (Details)	12 Months Ended
	Dec. 31, 2019
Cash and Cash Equivalents
Period for which federal funds are sold and purchased	1 day

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Acquired Loans (Details) $ in Thousands	Dec. 31, 2019USD ($)loan	Dec. 31, 2018USD ($)loan
Summary of Significant Accounting Policies
Number of loan classified as PCI loan | loan	0	0
Total with an allowance recorded, Allowance for Loan Losses Allocated | $	$ 1,835	$ 6,944

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Premises and Equipment (Details)	12 Months Ended
	Dec. 31, 2019building
Premises and Equipment
Number of buildings owned	1
Building
Premises and Equipment
Estimated useful life	40 years
Furniture | Minimum
Premises and Equipment
Estimated useful life	5 years
Furniture | Maximum
Premises and Equipment
Estimated useful life	15 years
Equipment | Minimum
Premises and Equipment
Estimated useful life	5 years
Equipment | Maximum
Premises and Equipment
Estimated useful life	15 years
Leasehold improvements | Minimum
Premises and Equipment
Estimated useful life	5 years
Leasehold improvements | Maximum
Premises and Equipment
Estimated useful life	15 years

Summary of Significant Accoun_6

Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details)	May 04, 2018	Apr. 06, 2018	Oct. 31, 2019	May 31, 2018	Apr. 30, 2018	Aug. 31, 2015	Nov. 30, 2014
United American Bank
Goodwill and Other Intangible Assets
Useful life, amortization period	3 years
Tri Valley Bank
Goodwill and Other Intangible Assets
Useful life, amortization period		11 years
Core deposit | Focus
Goodwill and Other Intangible Assets
Useful life, amortization period						10 years
Core deposit | United American Bank
Goodwill and Other Intangible Assets
Useful life, amortization period				10 years
Core deposit | Tri Valley Bank
Goodwill and Other Intangible Assets
Useful life, amortization period					10 years
Core deposit | Presidio bank
Goodwill and Other Intangible Assets
Useful life, amortization period			10 years
Below or Above market-value lease | United American Bank
Goodwill and Other Intangible Assets
Useful life, amortization period				3 years
Below or Above market-value lease | Tri Valley Bank
Goodwill and Other Intangible Assets
Useful life, amortization period					11 years
Below or Above market-value lease | Presidio bank
Goodwill and Other Intangible Assets
Useful life, amortization period			60 months
Customer relationship and brokered relationship | BVF/CSNK
Goodwill and Other Intangible Assets
Useful life, amortization period							10 years

Summary of Significant Accoun_7

Summary of Significant Accounting Policies - Foreclosed Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Foreclosed Assets
Foreclosed assets	$ 0	$ 0

Summary of Significant Accoun_8

Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate	21.00%	21.00%	35.00%
ASU 2016-09
Income Taxes
Reduction to income tax expenses	$ 146,000	$ 424,000	$ 146,000

Summary of Significant Accoun_9

Summary of Significant Accounting Policies - Segment Reporting (Details)	12 Months Ended
	Dec. 31, 2019segmentcustomer
Segment Reporting
Number of customers accounting for more than 10 percent of revenue for HBC or the Company | customer	0
Number of Reportable Segments | segment	2

Summary of Significant Accou_10

Summary of Significant Accounting Policies - Adoption of New Accounting Standards (Details) - USD ($)	Jan. 01, 2020	Dec. 31, 2019
Operating Lease - Liabilities		$ 13,032,000
Maximum
Increase in allowance for credit losses for loans	$ 12,000,000
ASU 2016-02
Operating Lease - ROU assets		12,200,000
Operating Lease - Liabilities		$ 13,000,000

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (''AOCI'') - Changes in AOCI by Component (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	$ (12,381)
Net current period other comprehensive income (loss), net of taxes	2,603	$ (3,129)	$ (319)
Balance at the end of the period, net of taxes	(9,778)	(12,381)
Accumulated Other Comprehensive Income / (Loss)
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(12,381)	(9,252)
Other comprehensive income (loss) before reclassification, net of taxes	3,053	(3,071)
Amounts reclassified from other comprehensive income (loss), net of taxes	(450)	(58)
Net current period other comprehensive income (loss), net of taxes	2,603	(3,129)	(319)
Balance at the end of the period, net of taxes	(9,778)	(12,381)	(9,252)
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(5,007)	(362)
Other comprehensive income (loss) before reclassification, net of taxes	7,075	(4,458)
Amounts reclassified from other comprehensive income (loss), net of taxes	(466)	(187)
Net current period other comprehensive income (loss), net of taxes	6,609	(4,645)
Balance at the end of the period, net of taxes	1,602	(5,007)	(362)
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	344	375
Amounts reclassified from other comprehensive income (loss), net of taxes	(46)	(31)
Net current period other comprehensive income (loss), net of taxes	(46)	(31)
Balance at the end of the period, net of taxes	298	344	375
Defined Benefit Pension Plan Items
Changes in AOCI by Component
Balance at the beginning of the period, net of taxes	(7,718)	(9,265)
Other comprehensive income (loss) before reclassification, net of taxes	(4,022)	1,387
Amounts reclassified from other comprehensive income (loss), net of taxes	62	160
Net current period other comprehensive income (loss), net of taxes	(3,960)	1,547
Balance at the end of the period, net of taxes	$ (11,678)	$ (7,718)	$ (9,265)

Accumulated Other Comprehensi_4

Accumulated Other Comprehensive Income (''AOCI'') - Amount Reclassified from AOCI (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Amount Reclassified from AOCI
Gain (loss) on sales of securities									$ 661	$ 266	$ (6)
Interest income on taxable securities									15,836	15,211	13,724
Income tax expense	$ (2,088)	$ (4,633)	$ (4,623)	$ (4,507)	$ (5,138)	$ (4,979)	$ 31	$ (3,238)	(15,851)	(13,324)	(26,471)
Net income	5,685	11,277	11,353	12,146	13,232	12,375	915	8,809	40,461	35,331	23,828
Income before income tax	$ 7,773	$ 15,910	$ 15,976	$ 16,653	$ 18,370	$ 17,354	$ 884	$ 12,047	56,312	48,655	50,299
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips
Amount Reclassified from AOCI
Net of tax									466	187
Unrealized Gains (Losses) on Available-for-Sale Securities and I/O Strips | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Gain (loss) on sales of securities									661	266	(6)
Income tax expense									(195)	(79)	3
Net income									466	187	(3)
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity
Amount Reclassified from AOCI
Net of tax									46	31
Unamortized Unrealized Gain on Available-for-Sale Securities Reclassified to Held-to-Maturity | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Interest income on taxable securities									65	44	51
Income tax expense									(19)	(13)	(22)
Net income									46	31	29
Defined Benefit Pension Plan Items
Amount Reclassified from AOCI
Net of tax									(62)	(160)
Defined Benefit Pension Plan Items | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense									(88)	(227)	(205)
Income tax benefit									26	67	86
Net of tax									(62)	(160)	(119)
Prior transition obligation | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense									96	65	71
Actuarial losses | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Other noninterest expense									(184)	(292)	(276)
Accumulated Other Comprehensive Income / (Loss)
Amount Reclassified from AOCI
Net of tax									450	58
Accumulated Other Comprehensive Income / (Loss) | Amount Reclassified from AOCI
Amount Reclassified from AOCI
Net of tax									$ 450	$ 58	$ (93)

Securities - Amortized Cost and

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Securities available-for-sale:
Amortized Cost	$ 402,537	$ 466,779
Gross Unrealized Gains	2,459	1,032
Gross Unrealized (Losses)	(171)	(8,768)
Total	404,825	459,043
Agency mortgage-backed securities
Securities available-for-sale:
Amortized Cost	283,598	311,523
Gross Unrealized Gains	934	98
Gross Unrealized (Losses)	(171)	(8,767)
Total	284,361	302,854
U.S. Treasury
Securities available-for-sale:
Amortized Cost	118,939	147,823
Gross Unrealized Gains	1,525	930
Total	$ 120,464	148,753
U.S. Government sponsored entities
Securities available-for-sale:
Amortized Cost		7,433
Gross Unrealized Gains		4
Gross Unrealized (Losses)		(1)
Total		$ 7,436

Securities - Amortized Cost a_2

Securities - Amortized Cost and Estimated Fair Value of Securities - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Securities held-to-maturity:
Amortized Cost	$ 366,560	$ 377,198
Gross Unrealized Gains	2,519	371
Gross Unrealized (Losses)	(972)	(11,394)
Estimated Fair Value	368,107	366,175
Agency mortgage-backed securities
Securities held-to-maturity:
Amortized Cost	285,344	291,241
Gross Unrealized Gains	1,206	59
Gross Unrealized (Losses)	(968)	(9,153)
Estimated Fair Value	285,582	282,147
Municipals - exempt from Federal tax
Securities held-to-maturity:
Amortized Cost	81,216	85,957
Gross Unrealized Gains	1,313	312
Gross Unrealized (Losses)	(4)	(2,241)
Estimated Fair Value	$ 82,525	$ 84,028

Securities - Securities with Un

Securities - Securities with Unrealized Losses - Securities Available-for-sale (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Available-for-sale, Fair Value
Less Than 12 Months	$ 100,816	$ 7,842
12 Months or More	27,534	281,082
Total	128,350	288,924
Available-for-sale, Unrealized (Losses)
Less Than 12 Months	(105)	(22)
12 Months or More	(66)	(8,746)
Total	(171)	(8,768)
Agency mortgage-backed securities
Available-for-sale, Fair Value
Less Than 12 Months	100,816	3,868
12 Months or More	27,534	281,082
Total	128,350	284,950
Available-for-sale, Unrealized (Losses)
Less Than 12 Months	(105)	(21)
12 Months or More	(66)	(8,746)
Total	$ (171)	(8,767)
U.S. Government sponsored entities
Available-for-sale, Fair Value
Less Than 12 Months		3,974
Total		3,974
Available-for-sale, Unrealized (Losses)
Less Than 12 Months		(1)
Total		$ (1)

Securities - Securities with _2

Securities - Securities with Unrealized Losses - Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Held-to-maturity, Fair Value
Less Than 12 Months	$ 51,616	$ 21,107
12 Months or More	88,128	313,218
Total	139,744	334,325
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(182)	(130)
12 Months or More	(790)	(11,264)
Total	(972)	(11,394)
Agency mortgage-backed securities
Held-to-maturity, Fair Value
Less Than 12 Months	50,060	16,088
12 Months or More	88,128	255,917
Total	138,188	272,005
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(178)	(103)
12 Months or More	(790)	(9,050)
Total	(968)	(9,153)
Municipals - exempt from Federal tax
Held-to-maturity, Fair Value
Less Than 12 Months	1,556	5,019
12 Months or More		57,301
Total	1,556	62,320
Held-to-maturity, Unrealized (Losses)
Less Than 12 Months	(4)	(27)
12 Months or More		(2,214)
Total	$ (4)	$ (2,241)

Securities - Additional Informa

Securities - Additional Information (Details)	12 Months Ended
	Dec. 31, 2019USD ($)itemsecurity	Dec. 31, 2018USD ($)
Additional Information
The number of holdings of securities of any one issuer other than the U.S. Government and its sponsored entities | security	0
Holdings of securities as percentage of shareholders' equity, considered as threshold for disclosure purpose	10.00%
Number of securities held | security	463
Number of available for sale securities held | item	141
Number of held to maturity securities held | item	322
Number of securities with fair values below amortized cost | security	86
Total unrealized loss for securities 12 months or more	$ 856,000
Available-for-sale securities carried with an unrealized loss for over 12 months	27,534,000	$ 281,082,000
Held-to-maturity securities carried with an unrealized loss for over 12 months	$ 88,128,000	313,218,000
Municipals - exempt from Federal tax
Additional Information
Held-to-maturity securities carried with an unrealized loss for over 12 months		$ 57,301,000

Securities - Proceeds from Sale

Securities - Proceeds from Sales of Securities and the Resulting Gains and Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Proceeds from Sales of Securities and the Resulting Gains and Losses
Proceeds	$ 167,551	$ 94,291	$ 6,536
Gross gains	1,094	1,243
Gross losses	$ (433)	$ (977)	$ (6)

Securities - Amortized Cost a_3

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity – Securities Available-for-sale (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Available-for-sale, Amortized Cost
Due after 3 months through one year	$ 54,649
Due after one year through five years	64,290
Agency mortgage-backed securities	283,598
Total	402,537	$ 466,779
Available-for-sale, Estimated Fair Value
Due after 3 months through one year	55,085
Due after one year through five years	65,379
Agency mortgage-backed securities	284,361
Total	$ 404,825	$ 459,043

Securities - Amortized Cost a_4

Securities - Amortized Cost and Fair Value of Debt Securities by Contractual Maturity – Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Held-to-maturity, Amortized Cost
Due 3 months or less	$ 125
Due after 3 months through one year	1,449
Due after one year through five years	5,206
Due after five years through ten years	31,698
Due after ten years	42,738
Agency mortgage-backed securities	285,344
Total	366,560	$ 377,198
Held-to-maturity, Estimated Fair Value
Due 3 months or less	125
Due after 3 months through one year	1,457
Due after one year through five years	5,358
Due after five years through ten years	32,279
Due after ten years	43,306
Agency mortgage-backed securities	285,582
Total	$ 368,107	$ 366,175

Securities - Securities Pledged

Securities - Securities Pledged to Secure Public Deposits and for Other Purposes (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Securities Pledged to Secure Public Deposits and for Other Purposes
Amortized cost of securities pledged to secure public deposits and for other purposes as required or permitted by law or contract	$ 32,773,000	$ 36,229,000

Loans -Loans Balance (Details)

Loans -Loans Balance (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Loans held-for-investment:
Total loan balance	$ 2,534,163	$ 1,886,732
Deferred loan fees, net	(319)	(327)
Loans, net of deferred fees	2,533,844	1,886,405	$ 1,582,667
Allowance for loan losses	(23,285)	(27,848)	(19,658)	$ (19,089)
Loans, net	2,510,559	1,858,557
Commercial
Loans held-for-investment:
Total loan balance		597,763
Commercial
Loans held-for-investment:
Total loan balance	631,547	597,763
Allowance for loan losses	(10,453)	(17,061)	(10,608)	(10,656)
Real estate
Loans held-for-investment:
Total loan balance	1,882,734	1,276,516
Allowance for loan losses	(12,750)	(10,671)	(8,950)	(8,327)
Real estate | CRE
Loans held-for-investment:
Total loan balance	1,510,592	994,067
Real estate | Land and construction
Loans held-for-investment:
Total loan balance	150,634	122,358
Real estate | Home equity
Loans held-for-investment:
Total loan balance	175,252	109,112
Real estate | Residential mortgages
Loans held-for-investment:
Total loan balance	46,256	50,979
Consumer
Loans held-for-investment:
Total loan balance	19,882	12,453
Allowance for loan losses	$ (82)	$ (116)	$ (100)	$ (106)

Loans - Additional Information

Loans - Additional Information (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loans
30 days or greater past due nonaccrual loans	$ 15,315,000				$ 8,873,000				$ 15,315,000	$ 8,873,000
Provision for loan losses	$ 3,223,000	$ (576,000)	$ (740,000)	$ (1,061,000)	$ 142,000	$ (425,000)	$ 7,198,000	$ 506,000	846,000	7,421,000	$ 99,000
Net (charge-offs) recoveries									$ (5,409,000)	$ 769,000	$ 470,000

Loans - Changes in the Allowanc

Loans - Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Changes in the Allowance for Loan Losses
Beginning of period balance				$ 27,848				$ 19,658	$ 27,848	$ 19,658	$ 19,089
Charge-offs									(6,623)	(2,026)	(2,239)
Recoveries									1,214	2,795	2,709
Net (charge-offs) recoveries									(5,409)	769	470
Provision for loan losses	$ 3,223	$ (576)	$ (740)	(1,061)	$ 142	$ (425)	$ 7,198	506	846	7,421	99
End of period balance	23,285				27,848				23,285	27,848	19,658
Commercial
Changes in the Allowance for Loan Losses
Beginning of period balance				17,061				10,608	17,061	10,608	10,656
Charge-offs									(6,609)	(2,002)	(2,239)
Recoveries									1,045	2,645	1,585
Net (charge-offs) recoveries									(5,564)	643	(654)
Provision for loan losses									(1,044)	5,810	606
End of period balance	10,453				17,061				10,453	17,061	10,608
Real estate
Changes in the Allowance for Loan Losses
Beginning of period balance				10,671				8,950	10,671	8,950	8,327
Recoveries									169	150	1,124
Net (charge-offs) recoveries									169	150	1,124
Provision for loan losses									1,910	1,571	(501)
End of period balance	12,750				10,671				12,750	10,671	8,950
Consumer
Changes in the Allowance for Loan Losses
Beginning of period balance				$ 116				$ 100	116	100	106
Charge-offs									(14)	(24)
Net (charge-offs) recoveries									(14)	(24)
Provision for loan losses									(20)	40	(6)
End of period balance	$ 82				$ 116				$ 82	$ 116	$ 100

Loans - Balance in the Allowanc

Loans - Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Individually evaluated for impairment	$ 1,835	$ 6,944
Allowance for loan losses, Collectively evaluated for impairment	21,450	20,904
Total allowance balance	23,285	27,848	$ 19,658	$ 19,089
Loans, Individually evaluated for impairment	10,264	15,140
Loans, Collectively evaluated for impairment	2,523,899	1,871,592
Total loan balance	2,534,163	1,886,732
Commercial
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Individually evaluated for impairment	1,835	6,944
Allowance for loan losses, Collectively evaluated for impairment	8,618	10,117
Total allowance balance	10,453	17,061	10,608	10,656
Loans, Individually evaluated for impairment	4,810	9,495
Loans, Collectively evaluated for impairment	626,737	588,268
Total loan balance	631,547	597,763
Real estate
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Collectively evaluated for impairment	12,750	10,671
Total allowance balance	12,750	10,671	8,950	8,327
Loans, Individually evaluated for impairment	5,454	5,645
Loans, Collectively evaluated for impairment	1,877,280	1,270,871
Total loan balance	1,882,734	1,276,516
Consumer
Balance in the Allowance for Loan Losses and the Recorded Investment in Loans by Portfolio Segment, Based on the Impairment Method
Allowance for loan losses, Collectively evaluated for impairment	82	116
Total allowance balance	82	116	$ 100	$ 106
Loans, Collectively evaluated for impairment	19,882	12,453
Total loan balance	$ 19,882	$ 12,453

Loans - Loans Held for Investme

Loans - Loans Held for Investment Individually Evaluated for Impairment by Class of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Unpaid Principal Balance
Total with no related allowance recorded	$ 7,567	$ 7,494
Total with an allowance recorded	2,697	7,646
Total	10,264	15,140
Recorded Investment
Total with no related allowance recorded	7,567	7,494
Total with an allowance recorded	2,697	7,646
Total	10,264	15,140
Total with an allowance recorded, Allowance for Loan Losses Allocated	1,835	6,944
Commercial
Unpaid Principal Balance
Total with no related allowance recorded	2,113	1,849
Total with an allowance recorded	2,697	7,646
Recorded Investment
Total with no related allowance recorded	2,113	1,849
Total with an allowance recorded	2,697	7,646
Total with an allowance recorded, Allowance for Loan Losses Allocated	1,835	6,944
Home equity | Real estate
Unpaid Principal Balance
Total with no related allowance recorded	360	551
Recorded Investment
Total with no related allowance recorded	360	551
CRE | Real estate
Unpaid Principal Balance
Total with no related allowance recorded	5,094	5,094
Recorded Investment
Total with no related allowance recorded	$ 5,094	$ 5,094

Loans - Interest Recognized and

Loans - Interest Recognized and Cash Basis Interest Earned on Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	$ 14,921	$ 14,762
Commercial
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	8,048
Commercial
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period		10,744
CRE | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	6,433	3,507
Land and construction | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period		24
Home equity | Real estate
Interest Recognized and Cash Basis Interest Earned on Impaired Loans
Average of impaired loans during the period	$ 440	$ 487

Loans - Nonperforming Loans (De

Loans - Nonperforming Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Nonaccrual loans - held-for-investment	$ 8,675	$ 13,699
Restructured and loans over 90 days past due and still accruing	1,153	1,188
Total nonperforming loans	9,828	14,887
Other restructured loans	436	253
Total	$ 10,264	$ 15,140

Loans - Nonperforming Loans by

Loans - Nonperforming Loans by Class (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	$ 8,675	$ 13,699
Restructured and Loans Over 90 Days Past Due and Still Accruing	1,153	1,188
Total	9,828	14,887
Commercial
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	3,444	8,279
Restructured and Loans Over 90 Days Past Due and Still Accruing	1,153	963
Total	4,597	9,242
CRE | Commercial
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment		5,094
CRE | Real estate
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	5,094
Total	5,094	5,094
Home equity | Real estate
Nonperforming Loans by Class
Nonaccrual loans - held-for-investment	137	326
Restructured and Loans Over 90 Days Past Due and Still Accruing		225
Total	$ 137	$ 551

Loans - Aging of Past Due Loans

Loans - Aging of Past Due Loans by Class of Loans - Tabular Disclosure (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Aging of Past Due Loans by Class of Loans
Total Past Due	$ 15,315	$ 8,873
Loans Not Past Due	2,518,848	1,877,859
Total loan balance	2,534,163	1,886,732
30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	4,770	5,699
60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	2,234	1,916
90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	8,311	1,258
Commercial
Aging of Past Due Loans by Class of Loans
Total Past Due	10,084
Loans Not Past Due	621,463
Total loan balance	631,547	597,763
Commercial | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	4,770
Commercial | 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	2,097
Commercial | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	3,217
Real estate
Aging of Past Due Loans by Class of Loans
Total loan balance	1,882,734	1,276,516
Consumer
Aging of Past Due Loans by Class of Loans
Total Past Due		1
Loans Not Past Due	19,882	12,452
Total loan balance	19,882	12,453
Consumer | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due		1
Commercial
Aging of Past Due Loans by Class of Loans
Total Past Due		8,872
Loans Not Past Due		588,891
Total loan balance		597,763
Commercial | 30-59 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due		5,698
Commercial | 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due		1,916
Commercial | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due		1,258
CRE | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	5,094
Loans Not Past Due	1,505,498	994,067
Total loan balance	1,510,592	994,067
CRE | Real estate | 90 Days or Greater Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	5,094
Land and construction | Real estate
Aging of Past Due Loans by Class of Loans
Loans Not Past Due	150,634	122,358
Total loan balance	150,634	122,358
Home equity | Real estate
Aging of Past Due Loans by Class of Loans
Total Past Due	137
Loans Not Past Due	175,115	109,112
Total loan balance	175,252	109,112
Home equity | Real estate | 60-89 Days Past Due
Aging of Past Due Loans by Class of Loans
Total Past Due	137
Residential mortgages | Real estate
Aging of Past Due Loans by Class of Loans
Loans Not Past Due	46,256	50,979
Total loan balance	$ 46,256	$ 50,979

Loans - Aging of Past Due Loa_2

Loans - Aging of Past Due Loans by Class of Loans - Additional Information (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Aging of Past Due Loans by Class of Loans
Past due loans 30 day or greater	$ 15,315,000	$ 8,873,000
Nonaccrual loans - held-for-investment	8,675,000	13,699,000
30 days or greater past due nonaccrual loans	15,315,000	8,873,000
30 days or greater past due
Aging of Past Due Loans by Class of Loans
30 days or greater past due nonaccrual loans	7,413,000	430,000
Less than 30 days past due
Aging of Past Due Loans by Class of Loans
Less than 30 days past due nonaccrual loans held-for-investment	$ 1,262,000	$ 13,269,000

Loans - Credit Quality Indicato

Loans - Credit Quality Indicators (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Loans
Balance to report	$ 2,510,559,000	$ 1,858,557,000
Loan classified as loss
Loans
Balance to report	0	$ 0
Loan classified as loss | Minimum
Loans
Recovery value	$ 0

Loans - Summary of the Loan Por

Loans - Summary of the Loan Portfolio by Loan Type and Credit Quality Classification (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Loans
Total	$ 2,534,163	$ 1,886,732
Nonclassified
Loans
Total	2,501,584	1,863,323
Classified
Loans
Total	32,579	23,409
Commercial
Loans
Total		597,763
Commercial
Loans
Total	631,547	597,763
Commercial | Nonclassified
Loans
Total	623,768	584,845
Commercial | Classified
Loans
Total	7,779	12,918
Real estate
Loans
Total	1,882,734	1,276,516
Real estate | CRE
Loans
Total	1,510,592	994,067
Real estate | CRE | Nonclassified
Loans
Total	1,492,126	985,193
Real estate | CRE | Classified
Loans
Total	18,466	8,874
Real estate | Land and construction
Loans
Total	150,634	122,358
Real estate | Land and construction | Nonclassified
Loans
Total	147,553	122,358
Real estate | Land and construction | Classified
Loans
Total	3,081
Real estate | Home equity
Loans
Total	175,252	109,112
Real estate | Home equity | Nonclassified
Loans
Total	171,999	107,495
Real estate | Home equity | Classified
Loans
Total	3,253	1,617
Real estate | Residential mortgages
Loans
Total	46,256	50,979
Real estate | Residential mortgages | Nonclassified
Loans
Total	46,256	50,979
Consumer
Loans
Total	19,882	12,453
Consumer | Nonclassified
Loans
Total	$ 19,882	$ 12,453

Loans - Troubled Debt Restructu

Loans - Troubled Debt Restructurings (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Loans
Recorded investment of troubled debt restructurings	$ 1,039,000	$ 649,000
Troubled debt restructurings, nonaccrual loans	590,000	36,000
Troubled debt restructurings, accruing loans	449,000	613,000
Specific reserves	20,000	38,000
Additional loan committed on any loans classified as troubled debt restructuring.	$ 0	$ 0

Loans - Troubled Debt Restruc_2

Loans - Troubled Debt Restructurings by Class (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)contract	Dec. 31, 2018USD ($)contract
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period | contract	3	3
Pre-modification Outstanding Recorded Investment	$ 591	$ 336
Post-modification Outstanding Recorded Investment	$ 591	$ 336
Commercial
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period | contract	3	2
Pre-modification Outstanding Recorded Investment	$ 591	$ 112
Post-modification Outstanding Recorded Investment	$ 591	$ 112
Home equity
Troubled Debt Restructurings by Class
Number of loans modified as troubled debt restructurings during the period | contract		1
Pre-modification Outstanding Recorded Investment		$ 224
Post-modification Outstanding Recorded Investment		$ 224

Loans - Defaults on Troubled De

Loans - Defaults on Troubled Debt Restructurings (Details)	12 Months Ended
	Dec. 31, 2019contractloanitem	Dec. 31, 2018contractitem
Loans
Number of troubled debt restructurings in which the amount of principal or accrued interest owed from the borrower was forgiven | loan	0
Number of loans modified as troubled debt restructurings during the period | contract	3	3
Default period contractually past due under modified terms (in days)	30 days
Number of defaults on troubled debt restructurings | item	0	0
Period of consecutive payments (in months)	6 months

Loans - Loans Due From Related

Loans - Loans Due From Related Parties (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2018USD ($)
Loans due from related parties
Balance, beginning of year	$ 531
Repayment on loans during the year	$ (531)

Loan Servicing - SBA Loans (Det

Loan Servicing - SBA Loans (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loans
Serviced SBA loans sold to secondary market	$ 87,835,000	$ 104,016,000	$ 139,086,000
Weighted average servicing rate for loans serviced (as a percent)	1.16%	1.12%	1.13%

Loan Servicing - Activity for L

Loan Servicing - Activity for Loan Servicing Rights (Details) - Loan servicing rights - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Activity for Loan Servicing Rights
Balance, beginning of year	$ 871	$ 1,373	$ 1,854
Additions	157	200	278
Amortization	(445)	(702)	(759)
Balance, end of year	$ 583	$ 871	$ 1,373

Loan Servicing - Loan Servicing

Loan Servicing - Loan Servicing Rights - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Loan Servicing
Carrying amount/fair value	$ 1,295,000	$ 1,651,000	$ 2,594,000
Prepayment speed assumption (annual rate) (as a percent)	13.50%	10.89%	8.13%
Residual cash flow discount rate assumption (annual) (as a percent)	15.90%	16.40%	13.86%
Loan servicing rights
Loan Servicing
Valuation allowance	$ 0	$ 0	$ 0

Loan Servicing - Activity for I

Loan Servicing - Activity for I/O Strip Receivables (Details) - I/O strip receivables - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Activity for I/O Strip Receivables
Balance, beginning of year	$ 568	$ 968	$ 1,067
Unrealized loss	(65)	(400)	(99)
Balance, end of year	$ 503	$ 568	$ 968

Premises and Equipment - Premis

Premises and Equipment - Premises and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Premises and Equipment
Premises and equipment, gross	$ 23,847	$ 21,637
Accumulated depreciation and amortization	(15,597)	(14,500)
Premises and equipment, net	8,250	7,137
Building
Premises and Equipment
Premises and equipment, gross	3,508	3,508
Land
Premises and Equipment
Premises and equipment, gross	2,900	2,900
Furniture and equipment
Premises and Equipment
Premises and equipment, gross	10,067	9,584
Leasehold improvements
Premises and Equipment
Premises and equipment, gross	$ 7,372	$ 5,645

Premises and Equipment - Deprec

Premises and Equipment - Depreciation and Amortization Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Premises and Equipment
Depreciation and amortization	$ 846	$ 753	$ 786

Leases (Details)

Leases (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Dec. 31, 2019USD ($)	Dec. 31, 2019USD ($)	Jun. 30, 2019ft²
Lessee, Lease, Description [Line Items]
Lessee, Operating Lease, Option to renew		true
Operating Lease Cost (Cost resulting from lease payments)		$ 1,490
Operating Lease - Operating Cash Flows (Fixed Payments)		1,519
Operating Lease - Liabilities	$ 13,032	$ 13,032
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Operating Lease - Liabilities	Operating Lease - Liabilities
Weighted Average Lease Term - Operating Leases	4 years 9 months 15 days	4 years 9 months 15 days
Weighted Average Discount Rate - Operating Leases	3.86%	3.86%
Area of office space | ft²			54,910
Wallnut creek
Lessee, Lease, Description [Line Items]
Lease impairment and write-off of fixed assets and tenant improvements	$ 434
San Mateo
Lessee, Lease, Description [Line Items]
Lease impairment and write-off of fixed assets and tenant improvements	625
ASU 2018-11
Lessee, Lease, Description [Line Items]
Operating Lease - ROU assets	$ 12,173	$ 12,173

Leases - Maturity Analysis (Det

Leases - Maturity Analysis (Details) $ in Thousands	Dec. 31, 2019USD ($)
Operating Lease Payments Due
2020	$ 3,812
2021	2,852
2022	2,578
2023	1,855
2024	1,474
Thereafter	1,618
Total undiscounted cash flows	14,189
Discount on cash flows	(1,157)
Total lease liability	$ 13,032

Business Combinations - Tri-Val

Business Combinations - Tri-Valley (Details) - Tri Valley Bank	Apr. 06, 2018USD ($)shares
Business Combinations
Aggregate transaction value	$ 32,320,000
Shares issued in acquisition | shares	1,889,613
Issuance of 1,889,613 shares of common stock to Tri-Valley shareholders at $16.26 per share at Closing	$ 30,725,000
Fixed exchange ratio of company's common stock	0.0489
Total cash paid	$ 1,595,000

Business Combinations - United

Business Combinations - United American (Details) - United American Bank	May 04, 2018USD ($)$ / sharesshares
Business Combinations
Aggregate transaction value	$ 56,417,000
Fixed exchange ratio of company's common stock	2.1644
Shares issued in acquisition | shares	2,826,032
Total cash paid	$ 9,137,000
Issuance of shares of common stock to holders of restricted stock	47,280,000
Series A Preferred Stock
Business Combinations
Total cash paid	8,700,000
Series B Preferred Stock
Business Combinations
Total cash paid	$ 435,000
Series A and Series B Preferred Stock
Business Combinations
Cash issued per share | $ / shares	$ 1,000
Other
Business Combinations
Total cash paid	$ 2,000

Business combinations - Presidi

Business combinations - Presidio (Details)	Oct. 11, 2019USD ($)$ / sharesshares	Oct. 31, 2019	Dec. 31, 2019USD ($)	Dec. 19, 2019USD ($)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Assets acquired:
Securities available-for-sale			$ 45,069,000		$ 63,723,000
Securities held-to-maturity			463,000
Loans			685,964,000		336,446,000
Premises and equipment			1,756,000		350,000
Other assets, net			29,397,000		14,736,000
Liabilities assumed:
Deposits			774,259,000		416,628,000
Subordinate debt			39,554,000		39,369,000
Other borrowings			442,000		62,000
Other liabilities			17,916,000		3,038,000
Goodwill recorded in the merger			167,420,000		83,753,000	$ 45,664,000
Subordinate debt			39,554,000		$ 39,369,000
Presidio bank
Assets acquired:
Cash and cash equivalents			117,988,000
Securities available-for-sale			45,069,000
Securities held-to-maturity			463,000
Loans			685,964,000
Premises and equipment			1,756,000
Other intangible assets			11,147,000
Other assets, net			42,161,000
Total assets acquired			904,548,000
Liabilities assumed:
Deposits			774,259,000
Subordinate debt			10,000,000	$ 10,000,000
Other borrowings			442,000
Other liabilities			17,916,000
Total liabilities assumed			802,617,000
Net assets acquired			101,931,000
Purchase price			185,598,000
Goodwill recorded in the merger			$ 83,667,000
Aggregate transaction value	$ 185,598,000
Fixed exchange ratio			2.47
Issuance of shares of common stock to Presidio shareholders | shares	15,684,064
Issuance of shares of common stock to holders of restricted stock	$ 178,171,000
Stock price at Closing (in dollars per share) | $ / shares	$ 11.36
Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options	$ 7,426,000		$ 7,426,000
Cash paid for fractional shares	$ 1,000
Subordinate debt			10,000,000	$ 10,000,000
Presidio bank | Below or Above market-value lease
Liabilities assumed:
Amortized intangible assets		60 months
As Recorded | Presidio bank
Assets acquired:
Cash and cash equivalents			117,989,000
Securities available-for-sale			44,647,000
Securities held-to-maturity			463,000
Loans			698,493,000
Allowance for loan losses			(7,463,000)
Premises and equipment			1,756,000
Other assets, net			43,539,000
Total assets acquired			899,424,000
Liabilities assumed:
Deposits			774,260,000
Subordinate debt			10,000,000
Other borrowings			442,000
Other liabilities			17,916,000
Total liabilities assumed			802,618,000
Subordinate debt			10,000,000
Fair Value Adjustments | Presidio bank
Assets acquired:
Cash and cash equivalents			(1,000)
Securities available-for-sale			422,000
Loans			(12,529,000)
Allowance for loan losses			7,463,000
Other intangible assets			11,147,000
Other assets, net			(1,378,000)
Total assets acquired			5,124,000
Liabilities assumed:
Deposits			(1,000)
Total liabilities assumed			$ (1,000)

Business Combinations - Pro For

Business Combinations - Pro Forma Information (Details) - Presidio bank - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Pro Forma Information
Net interest income	$ 163,555	$ 160,044
Provision (credit) for loan losses	870	7,694
Noninterest income	11,291	10,795
Noninterest expense	92,709	97,563
Income before income taxes	81,268	65,582
Income tax expense	23,730	17,549
Net income	$ 57,538	$ 48,033
Net income per share - basic (in dollars per share)	$ 0.98	$ 0.84
Net income per share - diluted (in dollars per share)	$ 0.96	$ 0.83

Business combinations - Pre-tax

Business combinations - Pre-tax merger-related costs (Details) - USD ($)	3 Months Ended							12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Salaries and employee benefits								$ 6,580,000	$ 3,569,000
Other								4,500,000	5,598,000	$ 671,000
Pre-tax acquisition costs	$ 9,879,000	$ 661,000	$ 540,000	$ 139,000	$ 199,000	$ 8,214,000	$ 615,000	11,080,000	9,167,000	671,000
Presidio bank
Business Acquisition [Line Items]
Salaries and employee benefits								6,580,000
Other								4,500,000
Pre-tax acquisition costs								$ 11,080,000
Tri Valley Bank
Business Acquisition [Line Items]
Salaries and employee benefits									3,569,000
Other									5,598,000
Pre-tax acquisition costs									$ 9,167,000
United American Bank
Business Acquisition [Line Items]
Other										671,000
Pre-tax acquisition costs										$ 671,000

Business Combinations (Details)

Business Combinations (Details)	3 Months Ended							12 Months Ended
	Dec. 31, 2019USD ($)companyloan	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Dec. 31, 2018USD ($)loan	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2019USD ($)companyloan	Dec. 31, 2018USD ($)loan	Dec. 31, 2017USD ($)
Business Combinations
Number of business banking franchises acquired | company	3							3
Combined business value after business combination	$ 4,100,000,000							$ 4,100,000,000
Other merger-related costs								4,500,000	$ 5,598,000	$ 671,000
Salaries and employee benefits merger-related costs								6,580,000	3,569,000
Pre-tax acquisition costs	$ 9,879,000	$ 661,000	$ 540,000	$ 139,000	$ 199,000	$ 8,214,000	$ 615,000	$ 11,080,000	$ 9,167,000	$ 671,000
Number of loan classified as PCI loan | loan	0			0				0	0
Total with an allowance recorded, Allowance for Loan Losses Allocated	$ 1,835,000			$ 6,944,000				$ 1,835,000	$ 6,944,000

Goodwill and Other Intangible_3

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Apr. 06, 2018	Dec. 31, 2017
Goodwill
Goodwill	$ 167,420,000	$ 83,753,000		$ 45,664,000
Goodwill acquired	83,667,000	38,089,000
Tri Valley Bank
Goodwill
Goodwill			$ 13,819,000
United American Bank
Goodwill
Goodwill	24,270,000
Presidio bank
Goodwill
Goodwill	83,667,000
Banking
Goodwill
Goodwill	154,376,000	70,709,000		32,620,000
Factoring
Goodwill
Goodwill	$ 13,044,000	$ 13,044,000		$ 13,044,000

Goodwill and Other Intangible_4

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($)	May 04, 2018	Apr. 06, 2018	Oct. 31, 2019	May 31, 2018	Apr. 30, 2018	Aug. 31, 2015	Nov. 30, 2014	Dec. 31, 2019	Dec. 31, 2018
United American Bank
Other Intangible Assets
Accumulated amortization								$ 1,788,000	$ 756,000
Useful life, amortization period	3 years
United American Bank | Core deposit
Other Intangible Assets
Intangible assets acquired				$ 5,723,000
Useful life, amortization period				10 years
United American Bank | Below or Above market-value lease
Other Intangible Assets
Intangible assets acquired				$ 660,000
Useful life, amortization period				3 years
Tri Valley Bank
Other Intangible Assets
Accumulated amortization								480,000	222,000
Useful life, amortization period		11 years
Tri Valley Bank | Core deposit
Other Intangible Assets
Intangible assets acquired					$ 1,768,000
Useful life, amortization period					10 years
Tri Valley Bank | Below or Above market-value lease
Other Intangible Assets
Intangible assets acquired					$ 210,000
Useful life, amortization period					11 years
Presidio bank
Other Intangible Assets
Accumulated amortization								524,000
Presidio bank | Core deposit
Other Intangible Assets
Intangible assets acquired			$ 11,247,000
Useful life, amortization period			10 years
Presidio bank | Below or Above market-value lease
Other Intangible Assets
Accumulated amortization			$ (100,000)
Useful life, amortization period			60 months
Focus
Other Intangible Assets
Accumulated amortization								3,504,000	2,770,000
Focus | Core deposit
Other Intangible Assets
Intangible assets acquired						$ 6,285,000
Useful life, amortization period						10 years
BVF/CSNK
Other Intangible Assets
Accumulated amortization								$ 981,000	$ 791,000
BVF/CSNK | Below or Above market-value lease
Other Intangible Assets
Intangible assets acquired							$ 109,000
BVF/CSNK | Non-compete agreement
Other Intangible Assets
Intangible assets acquired							250,000
BVF/CSNK | Customer relationship and brokered relationship
Other Intangible Assets
Intangible assets acquired							$ 1,900,000
Useful life, amortization period							10 years

Goodwill and Other Intangible_5

Goodwill and Other Intangible Assets - Estimated Amortization Expense (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Estimated Amortization Expense
2020	$ 3,731
2021	3,017
2022	2,635
2023	2,405
2024	2,187
Thereafter	6,440
Total	20,415	$ 12,007
United American Bank | Core deposit
Estimated Amortization Expense
2020	665
2021	602
2022	553
2023	521
2024	499
Thereafter	1,520
Total	4,360
United American Bank | Below or Above market-value lease
Estimated Amortization Expense
2020	235
Total	235
Tri Valley Bank | Core deposit
Estimated Amortization Expense
2020	208
2021	184
2022	167
2023	158
2024	152
Thereafter	451
Total	1,320
Tri Valley Bank | Below or Above market-value lease
Estimated Amortization Expense
2020	18
2021	18
2022	18
2023	18
2024	18
Thereafter	88
Total	178
Presidio bank | Core deposit
Estimated Amortization Expense
2020	1,719
2021	1,447
2022	1,225
2023	1,118
2024	1,026
Thereafter	4,181
Total	10,716
Presidio bank | Below or Above market-value lease
Estimated Amortization Expense
2020	(20)
2021	(20)
2022	(20)
2023	(20)
2024	(14)
Total	(94)
Focus | Core deposit
Estimated Amortization Expense
2020	716
2021	596
2022	502
2023	420
2024	347
Thereafter	200
Total	2,781
BVF/CSNK | Customer relationship and brokered relationship
Estimated Amortization Expense
2020	190
2021	190
2022	190
2023	190
2024	159
Total	$ 919

Goodwill and Other Intangible_6

Goodwill and Other Intangible Assets - Impairment of Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Impairment of Intangible Assets
Impairment of intangible assets	$ 0	$ 0

Deposits - Time Deposits (Detai

Deposits - Time Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deposits.
Time deposits, including deposits within the CDARS and brokered deposits, $250,000 or more	$ 99,882	$ 86,114

Deposits - Scheduled Maturities

Deposits - Scheduled Maturities of all Time Deposits and Brokered Deposits for the Next Five Years (Details) $ in Thousands	Dec. 31, 2019USD ($)
Scheduled Maturities of Time Deposits Including Brokered Deposits for the Next Five Years
2020	$ 156,141
2021	9,658
2022	2,115
2023	54
2024	66
Total	$ 168,034

Deposits - Additional Informati

Deposits - Additional Information (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Additional Information
CDARS - money market and time deposits	$ 28,847	$ 14,898
Interest-bearing demand deposits	12,885	8,747
Money market accounts under CDARS program	2,171	3,366
Time deposits under CDARS program	13,791	2,785
Deposits from executive officers, directors, and their affiliates	$ 12,636	$ 21,752

Borrowing Arrangements - Federa

Borrowing Arrangements - Federal Home Loan Bank Borrowings, Federal Reserve Bank Borrowings, and Available Lines of Credit (Details) - Line of credit - FHLB of San Francisco - USD ($)	Dec. 31, 2019	Dec. 31, 2018
FHLB
Borrowing Arrangements
FHLB overnight borrowings	$ 0	$ 0
FHLB
Borrowing Arrangements
Loans pledged as collateral	272,879,000	228,152,000
Securities pledged as collateral	0	0
Line of credit	$ 228,103,000	$ 178,560,000

Borrowing Arrangements - Fede_2

Borrowing Arrangements - Federal Reserve Bank Borrowings (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Borrowing Arrangements
Amount outstanding	$ 0	$ 0
Line of credit | FRB
Borrowing Arrangements
Loans pledged as collateral	726,709,000	739,830,000
Line of credit	408,401,000	418,399,000
Amount outstanding	$ 0	$ 0

Borrowing Arrangements - Availa

Borrowing Arrangements - Available Lines of Credit (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Borrowing Arrangements
Federal funds purchased	$ 0	$ 0
Federal funds purchase arrangement
Borrowing Arrangements
Federal funds purchase arrangements available	$ 80,000,000

Borrowing Arrangements - Line o

Borrowing Arrangements - Line of Credit with a Corresponding Bank (Details)	Dec. 31, 2019USD ($)
Line of credit | HCC (Parent)
Borrowing Arrangements
Line of credit	$ 5,000,000

Borrowing Arrangements - Securi

Borrowing Arrangements - Securities Sold under Repurchase Agreements (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Borrowing Arrangements
Amount of securities sold under agreements	$ 0	$ 0

Borrowing Arrangements - Subord

Borrowing Arrangements - Subordinated Debt (Details) - USD ($)	May 26, 2017	Dec. 31, 2019	Dec. 19, 2019	Dec. 31, 2018
Principal amount	$ 40,000,000
Fixed interest rate (as a percent)	5.25%
Subordinated Debt.		$ 39,554,000		$ 39,369,000
Debt Issuance Costs		$ 446,000
Presidio bank
Fixed interest rate (as a percent)		8.00%
Subordinated Debt.		$ 10,000,000	$ 10,000,000
Pre-payment penalty		$ 300,000
LIBOR
Rate of interest added to base rate	336.50%

Income Taxes - Net Deferred Tax

Income Taxes - Net Deferred Tax Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Taxes
Statutory Federal income tax rate (as a percent)	21.00%	21.00%	35.00%
Net deferred tax assets
Valuation allowance for deferred tax assets	$ 0

Income Taxes - Income Tax (Bene

Income Taxes - Income Tax (Benefit) (Details)	3 Months Ended									12 Months Ended
	Dec. 31, 2019USD ($)	Sep. 30, 2019USD ($)	Jun. 30, 2019USD ($)	Mar. 31, 2019USD ($)	Dec. 31, 2018USD ($)	Sep. 30, 2018USD ($)	Jun. 30, 2018USD ($)	Mar. 31, 2018USD ($)	Dec. 31, 2017USD ($)	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Currently payable tax:
Federal										$ 7,631,000	$ 9,187,000	$ 12,948,000
State										4,689,000	5,416,000	4,653,000
Total currently payable										$ 12,320,000	14,603,000	17,601,000
Tax Cuts and Jobs Act of 2017 effect on re-measurement of net deferred tax assets									$ 7,103,000			7,103,000
Number of items for which the Company was unable to make a reasonable estimate for the effects of the tax law change | item										0
Deferred tax (benefit):
Federal										$ 2,200,000	(1,133,000)	1,193,000
Due to enactment of Tax Reform									$ 7,103,000			7,103,000
State										1,331,000	(146,000)	574,000
Total deferred tax										3,531,000	(1,279,000)	8,870,000
Income tax expense	$ 2,088,000	$ 4,633,000	$ 4,623,000	$ 4,507,000	$ 5,138,000	$ 4,979,000	$ (31,000)	$ 3,238,000		$ 15,851,000	$ 13,324,000	$ 26,471,000

Income Taxes - Effective Tax Ra

Income Taxes - Effective Tax Rate (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Effective tax rate differs from the federal statutory rate
Statutory Federal income tax rate (as a percent)	21.00%	21.00%	35.00%
State income taxes, net of federal tax benefit (as a percent)	8.50%	8.50%	6.80%
Low income housing credits, net of investment losses (as a percent)	(0.50%)	(0.80%)	(0.50%)
Increase in cash surrender value of life insurance (as a percent)	(0.50%)	(0.50%)	(1.20%)
Stock option/restricted stock windfall tax benefit	(0.30%)	(0.90%)	(0.30%)
Non-taxable interest income (as a percent)	(0.80%)	(0.90%)	(1.50%)
Split dollar term insurance (as a percent)	0.10%	0.10%	0.10%
Merger cost	0.50%	0.50%
Due to enactment of Tax Reform			14.10%
Other, net (as a percent)	0.10%	0.40%	0.10%
Effective tax rate (as a percent)	28.10%	27.40%	52.60%

Income Taxes - Deferred Tax Ass

Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Defined postretirement benefit obligation	$ 9,901	$ 7,877
Allowance for loan losses	7,231	7,697
Federal net operating loss carryforwards	3,662	5,093
Accrued expenses	2,562	1,939
Lease accounting	1,647
Stock compensation	1,636	1,244
California net operating loss carryforwards	1,489	2,128
State income taxes	954	1,117
Premises and equipment	695	642
Split-dollar life insurance benefit plan	75	80
Nonaccrual interest	61	55
Tax credit carryforwards	57	71
Securities available-for-sale		2,184
Other	654	716
Total deferred tax assets	30,624	30,843
Deferred tax liabilities:
Intangible liabilities	(1,321)	(1,671)
Loan fees	(1,842)	(1,089)
Prepaid expenses	(289)	(554)
I/O strips	(144)	(163)
Securities available-for-sale	(772)
Lease accounting	(1,647)
FHLB stock	(177)	(174)
Other	(130)	(103)
Total deferred tax liabilities	(6,322)	(3,754)
Net deferred tax assets	$ 24,302	$ 27,089

Income Taxes - Operating Loss C

Income Taxes - Operating Loss Carryforward (Details)	Dec. 31, 2019USD ($)
Federal | IRS
Operating Loss Carryforward
Net operating loss carryforward	$ 17,438,000
State | California
Operating Loss Carryforward
Net operating loss carryforward	$ 17,372,000

Income Taxes - Tax Credit Carry

Income Taxes - Tax Credit Carryforwards (Details)	Dec. 31, 2019USD ($)
California | State
Tax Credit Carryforwards
Total tax credit carryforwards	$ 57,328

Income Taxes - Carry Amounts of

Income Taxes - Carry Amounts of the Low Income Housing Investments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Low income housing investments	$ 6,126	$ 3,172
Future commitments	$ 625	$ 273

Income Taxes - Components of Lo

Income Taxes - Components of Low Income Housing Investment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Taxes
Low income housing tax credits	$ 511,000	$ 425,000
Low income housing investment expense	$ 520,000	$ 437,000

Income Taxes - Future Commitmen

Income Taxes - Future Commitments of the Low Income Housing Investments (Details) - Low income housing investments	Dec. 31, 2019USD ($)
Future Commitments
2019	$ 28,000
2021 through 2023	$ 597,000

Equity Plan - General Disclosur

Equity Plan - General Disclosures (Details) - USD ($) $ in Thousands	Oct. 11, 2019	Dec. 31, 2019	Dec. 31, 2018
Equity Plan
Number of shares available for future grants		796,957
Presidio bank
Equity Plan
Consideration for Presidio stock options exchanged for Heritage Commerce Corp stock options	$ 7,426	$ 7,426
Options
Equity Plan
Vesting period		4 years
Expiration term		10 years
Heritage Commerce Corp stock options		2,712,846	1,570,603
Options | Presidio bank
Equity Plan
Heritage Commerce Corp stock options		1,176,757
Restricted stock
Equity Plan
Number of equity awards issued (in shares)		134,653
Nonqualified stock options
Equity Plan
Number of equity awards issued (in shares)		299,500

Equity Plan - Stock Option Acti

Equity Plan - Stock Option Activity (Details) - Options - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2019
Number of Shares
Outstanding at the beginning of the period (in shares)	1,570,603
Granted (in shares)	299,500
Heritage Commerce Corp stock options	2,712,846	2,712,846
Exercised (in shares)	(266,689)
Forfeited or expired (in shares)	(67,325)
Outstanding at the end of the period (in shares)	2,712,846
Vested or expected to vest (in shares)		2,550,075
Exercisable at the end of the period (in shares)		2,206,775
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 10.76
Granted (in dollars per share)	12.16
Heritage Commerce Corp stock options	8.80	$ 8.80
Exercised (in dollars per share)	6.10
Forfeited or expired (in dollars per share)	14.31
Outstanding at the end of the period (in dollars per share)	$ 8.80
Additional Information
Weighted Average Remaining Contractual Life - Outstanding at the end of the period (in years)	5 years 7 months 13 days
Weighted Average Remaining Contractual Life - Vested or expected to vest (in years)	5 years 7 months 13 days
Weighted Average Remaining Contractual Life - Exercisable at the end of the period (in years)	4 years 11 months 5 days
Aggregate Intrinsic Value - Outstanding at the end of the period (in dollars)		$ 12,369,413
Aggregate Intrinsic Value - Vested or expected to vest (in dollars)		11,627,248
Aggregate Intrinsic Value - Exercisable at the end of the period (in dollars)		$ 12,151,054
Presidio bank
Number of Shares
Heritage Commerce Corp stock options	1,176,757	1,176,757
Outstanding at the end of the period (in shares)	1,176,757
Weighted Average Exercise Price
Heritage Commerce Corp stock options	$ 5.05	$ 5.05
Outstanding at the end of the period (in dollars per share)	$ 5.05

Equity Plan - Information Relat

Equity Plan - Information Related to the Equity Plans for each of the Last Three Years (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Information Related to the Equity Plans
Cash received from option exercise	$ 1,626,000	$ 2,667,000	$ 1,368,000
Options
Information Related to the Equity Plans
Intrinsic value of options exercised	1,618,615	1,844,909	1,342,794
Cash received from option exercise	1,626,113	2,667,305	1,368,673
Tax benefit realized from option exercises	$ 258,037	$ 534,638	$ 547,817
Weighted average fair value of options granted (in dollars per share)	$ 1.91	$ 3.03	$ 2.66

Equity Plan - Unrecognized Comp

Equity Plan - Unrecognized Compensation Cost - Nonvested Stock Options (Details) - Options	12 Months Ended
	Dec. 31, 2019USD ($)
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested stock options granted	$ 1,156,000
Expected weighted-average period for recognition of compensation costs related to nonvested stock options	2 years 7 months 21 days

Equity Plan - Assumptions Used

Equity Plan - Assumptions Used to Estimate Fair Value (Details) - Options	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Assumptions Used to Estimate Fair Value
Expected life in months	72 months	72 months	72 months
Volatility (as a percent)	24.00%	21.00%	24.00%
Weighted average risk-free interest rate (as a percent)	2.23%	2.88%	1.94%
Expected dividends (as a percent)	3.95%	2.64%	2.78%

Equity Plan - Restricted Stock

Equity Plan - Restricted Stock Activity (Details) - Restricted stock	12 Months Ended
	Dec. 31, 2019$ / sharesshares
Number of Shares
Nonvested shares at the beginning of the period (in shares) | shares	193,298
Granted (in shares) | shares	134,653
Vested (in shares) | shares	(82,498)
Forfeited or expired (in shares) | shares	(6,000)
Nonvested shares at the end of the period (in shares) | shares	239,453
Weighted Average Grant Date Fair Value
Nonvested shares at the beginning of the period (in dollars per share) | $ / shares	$ 11.04
Granted (in dollars per share) | $ / shares	12.16
Vested (in dollars per share) | $ / shares	12.37
Forfeited or expired (in dollars per share) | $ / shares	17.11
Nonvested shares at the end of the period (in dollars per share) | $ / shares	$ 11.23

Equity Plan - Unrecognized Co_2

Equity Plan - Unrecognized Compensation Cost - Nonvested Restricted Stock Awards (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Unrecognized Compensation Cost
Total compensation cost	$ 1,924,000	$ 1,817,000	$ 1,750,000
Total income tax benefit on share-based compensation cost	239,000	$ 424,000	$ 146,000
Restricted stock
Unrecognized Compensation Cost
Total unrecognized compensation cost related to nonvested restricted stock awards	$ 2,340,000
Expected weighted-average period for recognition of compensation costs related to nonvested restricted stock awards	2 years 1 month 10 days

Benefit Plans - 401(k) Savings

Benefit Plans - 401(k) Savings Plan (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
401(k) Savings Plan
Maximum discretionary contribution matched by employer for each employee's contribution	$ 3,000	$ 2,500
Contribution expense	$ 934,000	$ 749,000	$ 535,000

Benefit Plans - Employee Stock

Benefit Plans - Employee Stock Ownership Plan (Details)	12 Months Ended
	Dec. 31, 2019itemshares
Employee Stock Ownership Plan
Minimum number of hours of service required for plan eligibility | item	1,000
Number of shares of Company's common stock owned by ESOP | shares	102,834

Benefit Plans - Deferred Compen

Benefit Plans - Deferred Compensation Plan (Details) - employee	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Deferred Compensation Plan
Maximum percentage of bonus into deferred account	100.00%
Percentage of regular salary into deferred account	50.00%
Number of employees elected to participate in deferred compensation	5	7

Benefit Plans - Defined Benefit

Benefit Plans - Defined Benefit Plans - Nonqualified Defined Benefit Pension Plan (Details) - Supplemental Retirement Plan $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Supplemental Retirement Plan
Plan assets associated with the plan	$ 0
Vesting period of defined benefit stated amount, minimum	9 years

Benefit Plans - Defined Benef_2

Benefit Plans - Defined Benefit Plans - Change in Projected Benefit Obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Split-Dollar Life Insurance Benefit Plan
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$ 6,903	$ 6,711
Actuarial loss (gain)	1,017	(35)
Interest cost	278	227
Net actuarial loss	3,776	2,573
Projected benefit obligation at end of period	8,198	6,903
Supplemental Retirement Plan
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	26,781	28,510
Projected benefit obligation of SERP agreements acquired from Presidio	2,541
Service cost	263	249
Actuarial loss (gain)	(4,182)	1,885
Interest cost	1,059	947
Benefits paid	(1,137)	(1,040)
Net actuarial loss	9,670	5,672
Projected benefit obligation at end of period	$ 33,689	$ 26,781

Benefit Plans - Defined Benef_3

Benefit Plans - Defined Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Split-Dollar Life Insurance Benefit Plan
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 3,776	$ 2,573
Prior transition obligation	1,059	1,149
Accumulated other comprehensive loss	4,835	3,722
Supplemental Retirement Plan
Amounts Recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$ 9,670	$ 5,672

Benefit Plans - Defined Benef_4

Benefit Plans - Defined Benefit Plans - Weighted-average Assumptions Used to Determine the Benefit Obligation at Year-end (Details)	Dec. 31, 2019	Dec. 31, 2018
Supplemental Retirement Plan
Weighted-average Assumptions Used to Determine the Benefit Obligation at Year-end
Discount rate	3.01%	4.03%
Split-Dollar Life Insurance Benefit Plan
Weighted-average Assumptions Used to Determine the Benefit Obligation at Year-end
Discount rate	3.01%	4.03%

Benefit Plans - Defined Benef_5

Benefit Plans - Defined Benefit Plans - Estimated Benefit Payments over the Next Ten Years (Details) - Supplemental Retirement Plan $ in Thousands	Dec. 31, 2019USD ($)
Estimated Benefit Payments
2020	$ 1,509
2021	1,717
2022	1,863
2023	1,974
2024	2,011
2025 to 2029	11,366
Total	$ 20,440

Benefit Plans - Defined Benef_6

Benefit Plans - Defined Benefit Plans - Components of Pension Cost (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Supplemental Retirement Plan
Components of net periodic benefit cost:
Service cost	$ 263	$ 249
Interest cost	1,059	947
Amortization of net actuarial loss	184	292
Accelerated benefits for Presidio SERP agreements due to change in control	1,465
Net periodic benefit cost	2,971	1,488
Amount recognized in other comprehensive income	2,847	1,577
Split-Dollar Life Insurance Benefit Plan
Components of net periodic benefit cost:
Interest cost	278	227
Amortization of prior transition obligation	(96)	(65)
Net periodic benefit cost	182	162
Amount recognized in other comprehensive income	$ 1,113	$ (30)

Benefit Plans - Defined Benef_7

Benefit Plans - Defined Benefit Plans - Estimated Net Actuarial Loss and Prior Service Cost (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Supplemental Retirement Plan
Estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic cost over next fiscal year
Estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic cost over next fiscal year	$ 387,000	$ 183,000
Split-Dollar Life Insurance Benefit Plan
Estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic cost over next fiscal year
Estimated net actuarial loss and prior service cost that will be amortized from accumulated other comprehensive loss into net periodic cost over next fiscal year	$ 90,000	$ 90,000

Benefit Plans - Defined Benef_8

Benefit Plans - Defined Benefit Plans - Weighted-average Assumptions Used to Determine Net Periodic Cost (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Supplemental Retirement Plan
Weighted-average Assumption Used to Determine Net Periodic Benefit Cost:
Discount rate	4.03%	3.38%
Split-Dollar Life Insurance Benefit Plan
Weighted-average Assumption Used to Determine Net Periodic Benefit Cost:
Discount rate	4.03%	3.38%

Fair Value - Financial Assets a

Fair Value - Financial Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	$ 404,825	$ 459,043
I/O strip receivables	503	568
Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	284,361	302,854
U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	120,464	148,753
U.S. Government sponsored entities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale		7,436
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	120,464	148,753
Significant Other Observable Inputs (Level 2)
Financial Assets and Liabilities Measured on a Recurring Basis
I/O strip receivables	503	568
Significant Other Observable Inputs (Level 2) | Agency mortgage-backed securities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale	284,361	302,854
Significant Other Observable Inputs (Level 2) | U.S. Government sponsored entities
Financial Assets and Liabilities Measured on a Recurring Basis
Securities available-for-sale		7,436
Recurring basis
Transfers between Level 1 and Level 2
Transfers between Level 1 and Level 2	0	0
Transfers between Level 2 and Level 1	$ 0	$ 0

Fair Value - Financial Assets_2

Fair Value - Financial Assets and Liabilities Measured on a Non-Recurring Basis (Details) - Non-recurring basis - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	$ 862	$ 702
Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	862	702
Commercial | Commercial
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	862	702
Commercial | Commercial | Significant Unobservable Inputs (Level 3)
Financial Assets and Liabilities Measured on a Non-Recurring Basis
Impaired loans - held-for-investment:	$ 862	$ 702

Fair Value - Impaired Loans Hel

Fair Value - Impaired Loans Held-for-investment - Tabular Disclosure (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 10,264,000	$ 15,140,000
Carried at fair value
Impaired Loans Held-for-investment
Impaired loans held-for-investment	2,697,000	7,646,000
Specific valuation allowance	(1,835,000)	(6,944,000)
Impaired loans held-for-investment carried at fair value, net	862,000	702,000
Portion carried at cost
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 7,567,000	$ 7,494,000

Fair Value - Impaired Loans H_2

Fair Value - Impaired Loans Held-for-investment - Additional Disclosures (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 10,264,000	$ 15,140,000
Additional provision (credit) for loan losses	2,128,000	(7,042,000,000)
Carrying amount
Impaired Loans Held-for-investment
Foreclosed assets	0	0
Carried at fair value
Impaired Loans Held-for-investment
Impaired loans held-for-investment	2,697,000	7,646,000
Specific valuation allowance	1,835,000	6,944,000
Portion carried at cost
Impaired Loans Held-for-investment
Impaired loans held-for-investment	$ 7,567,000	$ 7,494,000

Fair Value - Quantitative Infor

Fair Value - Quantitative Information about Level 3 Fair Value Measurements (Details) - Non-recurring basis $ in Thousands	Dec. 31, 2019USD ($)item	Dec. 31, 2018USD ($)item
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	$ 862	$ 702
Significant Unobservable Inputs (Level 3)
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	862	702
Commercial | Commercial
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	862	702
Commercial | Commercial | Significant Unobservable Inputs (Level 3)
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Impaired loans - held-for-investment, Fair Value	$ 862	$ 702
Commercial | Commercial | Significant Unobservable Inputs (Level 3) | Minimum
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales - Impaired loan held for investment (as a percent) | item	0.01	0
Commercial | Commercial | Significant Unobservable Inputs (Level 3) | Maximum
Quantitative information about level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis
Discount adjustment for differences between comparable sales - Impaired loan held for investment (as a percent) | item		1

Fair Value - Carrying Amounts a

Fair Value - Carrying Amounts and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Assets
Securities available-for-sale	$ 404,825	$ 459,043
Securities held-to-maturity	368,107	366,175
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	29,842	25,216
I/O strips receivables	503	568
Liabilities
Subordinated Debt.	39,554	39,369
Significant Other Observable Inputs (Level 2)
Assets
I/O strips receivables	503	568
Carrying amount
Assets
Cash and cash equivalents	457,370	164,568
Securities available-for-sale	404,825	459,043
Securities held-to-maturity	366,560	377,198
Loans (including loans held-for-sale), net	2,511,611	1,861,206
Federal Home Loan Bank, Federal Reserve Bank stock and other investments, at cost	29,842	25,216
Accrued interest receivable	10,915	9,577
I/O strips receivables	503	568
Liabilities
Time deposits	168,034	147,560
Other deposits	3,246,734	2,489,972
Subordinated Debt.	39,554	39,369
Accrued interest payable	707	497
Carried at fair value
Assets
Cash and cash equivalents	457,370	164,568
Securities available-for-sale	404,825	459,043
Securities held-to-maturity	368,107	366,175
Loans (including loans held-for-sale), net	2,513,329	1,829,303
Accrued interest receivable	10,915	9,577
I/O strips receivables	503	568
Liabilities
Time deposits	158,704	147,916
Other deposits	3,246,734	2,489,972
Subordinated Debt.	40,404	38,969
Accrued interest payable	707	497
Carried at fair value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets
Cash and cash equivalents	457,370	164,568
Securities available-for-sale	120,464	148,753
Accrued interest receivable	446	597
Carried at fair value | Significant Other Observable Inputs (Level 2)
Assets
Securities available-for-sale	284,361	310,290
Securities held-to-maturity	368,107	366,175
Loans (including loans held-for-sale), net	1,052	2,649
Accrued interest receivable	2,218	2,274
I/O strips receivables	503	568
Liabilities
Time deposits	158,704	147,916
Other deposits	3,246,734	2,489,972
Subordinated Debt.	40,404	38,969
Accrued interest payable	707	497
Carried at fair value | Significant Unobservable Inputs (Level 3)
Assets
Loans (including loans held-for-sale), net	2,512,277	1,826,654
Accrued interest receivable	$ 8,251	$ 6,706

Commitments and Contingencies -

Commitments and Contingencies - Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Commitments and Contingencies
Commitments to extend credit, fixed rate	$ 158,817,000	$ 133,641,000
Commitments to extend credit, variable rate	961,821,000	606,738,000
Commitment to extend credit, total	$ 1,120,638,000	740,379,000
Expiration term of commitments (in years)	1 year
Reserves in the form of vault cash and balances at Federal Reserve Bank of San Francisco	$ 48,717,000
Unused lines of credit and commitments to make loans
Commitments and Contingencies
Commitments to extend credit, fixed rate	147,372,000	130,871,000
Commitments to extend credit, variable rate	951,206,000	593,839,000
Commitment to extend credit, total	1,098,578,000	724,710,000
Standby letters of credit
Commitments and Contingencies
Commitments to extend credit, fixed rate	11,445,000	2,770,000
Commitments to extend credit, variable rate	10,615,000	12,899,000
Commitment to extend credit, total	$ 22,060,000	$ 15,669,000

Shareholders' Equity and Earn_3

Shareholders' Equity and Earnings Per Share - Dividends (Details) - $ / shares	Jan. 23, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Dividends
Quarterly cash dividends declared to holders of common stock		$ 0.48	$ 0.44	$ 0.40
Subsequent Event
Dividends
Quarterly cash dividends declared to holders of common stock	$ 0.13

Shareholders' Equity and Earn_4

Shareholders' Equity and Earnings Per Share - Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Reconciliation of factors used in computing basic and diluted earnings per common share
Net income	$ 5,685	$ 11,277	$ 11,353	$ 12,146	$ 13,232	$ 12,375	$ 915	$ 8,809	$ 40,461	$ 35,331	$ 23,828
Weighted average common shares outstanding for basic earnings per common share (in shares)									46,684,384	41,469,211	38,095,250
Dilutive potential common shares									1,221,845	713,728	515,565
Shares used in computing diluted earnings per common share (in shares)									47,906,229	42,182,939	38,610,815
Basic earnings per share (in dollars per share)	$ 0.10	$ 0.26	$ 0.26	$ 0.28	$ 0.31	$ 0.29	$ 0.02	$ 0.23	$ 0.87	$ 0.85	$ 0.63
Diluted earnings per share (in dollars per share)	$ 0.10	$ 0.26	$ 0.26	$ 0.28	$ 0.30	$ 0.28	$ 0.02	$ 0.23	$ 0.84	$ 0.84	$ 0.62
Number of shares not in computing diluted earnings per common share									789,065	534,106	346,500

Capital Requirements - General

Capital Requirements - General Information (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
HBC (Wholly-owned Subsidiary)
Capital Requirements
Capital conservation buffer (as a percent)	2.50%	1.875%

Capital Requirements - Tabular

Capital Requirements - Tabular Disclosure (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Total Capital (to risk-weighted assets)
Actual, Amount	$ 457,158	$ 344,597
Required For Capital Adequacy Purposes, Amount	$ 329,306	$ 227,514
Actual, Ratio (as a percent)	14.60%	15.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	10.50%	9.875%
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 393,432	$ 276,675
Required For Capital Adequacy Purposes, Amount	$ 266,581	$ 181,435
Actual, Ratio (as a percent)	12.50%	12.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	8.50%	7.875%
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 393,432	$ 276,675
Required For Capital Adequacy Purposes, Amount	$ 219,538	$ 146,876
Actual, Ratio (as a percent)	12.50%	12.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7.00%	6.375%
Tier 1 Capital (to average assets)
Actual, Amount	$ 393,432	$ 276,675
Required For Capital Adequacy Purposes, Amount	$ 161,677	$ 124,726
Actual, Ratio (as a percent)	9.70%	8.90%
Required For Capital Adequacy Purposes, Ratio (as a percent)	4.00%	4.00%
HBC (Wholly-owned Subsidiary)
Total Capital (to risk-weighted assets)
Actual, Amount	$ 435,757	$ 322,283
To Be Well Capitalized Under Regulatory Requirements, Amount	313,485	230,275
Required For Capital Adequacy Purposes, Amount	$ 329,159	$ 227,397
Actual, Ratio (as a percent)	13.90%	14.00%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	10.00%	10.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	10.50%	9.875%
Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 411,585	$ 293,730
To Be Well Capitalized Under Regulatory Requirements, Amount	250,788	184,220
Required For Capital Adequacy Purposes, Amount	$ 266,462	$ 181,342
Actual, Ratio (as a percent)	13.10%	12.80%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	8.00%	8.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	8.50%	7.875%
Common Equity Tier 1 Capital (to risk-weighted assets)
Actual, Amount	$ 411,585	$ 293,730
To Be Well Capitalized Under Regulatory Requirements, Amount	203,765	149,679
Required For Capital Adequacy Purposes, Amount	$ 219,439	$ 146,800
Actual, Ratio (as a percent)	13.10%	12.80%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	6.50%	6.50%
Required For Capital Adequacy Purposes, Ratio (as a percent)	7.00%	6.375%
Tier 1 Capital (to average assets)
Actual, Amount	$ 411,585	$ 293,730
To Be Well Capitalized Under Regulatory Requirements, Amount	202,013	155,832
Required For Capital Adequacy Purposes, Amount	$ 161,611	$ 124,666
Actual, Ratio (as a percent)	10.20%	9.40%
To Be Well Capitalized Under Regulatory Requirements, Ratio (as a percent)	5.00%	5.00%
Required For Capital Adequacy Purposes, Ratio (as a percent)	4.00%	4.00%

Capital Requirements - Dividend

Capital Requirements - Dividends to Parent (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Aug. 27, 2019	Aug. 26, 2019
Cash dividend
Common stock, shares authorized	100,000,000	60,000,000	100,000,000	60,000,000
Subordinated Debt.	$ 39,554,000	$ 39,369,000
HCC (Parent)
Cash dividend
Subordinated Debt.	39,554,000	39,369,000
HBC (Wholly-owned Subsidiary)
Cash dividend
Cash dividend available	20,636,000
Dividends paid to parent company	$ 22,500,000	$ 17,000,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenue Recognition
Non-interest Income In-scope of Topic 606									$ 4,510	$ 4,113
Non-interest Income Out-of-scope of Topic 606									5,734	5,461
Total noninterest income	$ 2,393	$ 2,618	$ 2,765	$ 2,468	$ 2,393	$ 2,206	$ 2,780	$ 2,195	$ 10,244	$ 9,574	$ 9,612

Noninterest Expense (Details)

Noninterest Expense (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Noninterest Expense
Salaries and employee benefits									$ 50,754,000	$ 43,762,000	$ 35,719,000
Occupancy and equipment									6,647,000	5,411,000	4,578,000
Professional fees									3,259,000	1,969,000	2,982,000
Data processing									2,890,000	1,978,000	1,483,000
Amortization of intangible assets									2,739,000	1,943,000	1,361,000
Software subscriptions									2,397,000	2,343,000	1,831,000
Insurance expense									1,864,000	1,685,000	1,529,000
Other, excluding merger-related costs									14,348,000	16,430,000	11,255,000
Total noninterest expense, excluding merger-related costs									84,898,000	75,521,000	60,738,000
Salaries and employee benefits merger-related costs									6,580,000	3,569,000
Other merger-related costs									4,500,000	5,598,000	671,000
Pre-tax acquisition costs	$ 9,879,000	$ 661,000	$ 540,000		$ 139,000	$ 199,000	$ 8,214,000	$ 615,000	11,080,000	9,167,000	671,000
Total noninterest expense	$ 30,626,000	$ 17,909,000	$ 18,445,000	$ 17,918,000	$ 16,941,000	$ 17,728,000	$ 24,862,000	$ 15,990,000	$ 84,898,000	$ 75,521,000	$ 60,738,000

Business Segment Information -

Business Segment Information - Business Segments (Details)	12 Months Ended
	Dec. 31, 2019segment
Focus
Business Segment Information
Number of business segments	2

Business Segment Information _2

Business Segment Information - Operating Statements (Details) - USD ($)	3 Months Ended									12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Operating Income
Interest income	$ 42,471,000	$ 33,250,000	$ 33,489,000	$ 33,449,000	$ 35,378,000	$ 34,610,000	$ 31,980,000	$ 27,877,000		$ 142,659,000	$ 129,845,000	$ 106,911,000
Total interest expense	3,242,000	2,625,000	2,573,000	2,407,000	2,318,000	2,159,000	1,816,000	1,529,000		10,847,000	7,822,000	5,387,000
Net interest income	39,229,000	30,625,000	30,916,000	31,042,000	33,060,000	32,451,000	30,164,000	26,348,000		131,812,000	122,023,000	101,524,000
Provision for loan losses	3,223,000	(576,000)	(740,000)	(1,061,000)	142,000	(425,000)	7,198,000	506,000		846,000	7,421,000	99,000
Net interest income after provision	36,006,000	31,201,000	31,656,000	32,103,000	32,918,000	32,876,000	22,966,000	25,842,000		130,966,000	114,602,000	101,425,000
Noninterest income	2,393,000	2,618,000	2,765,000	2,468,000	2,393,000	2,206,000	2,780,000	2,195,000		10,244,000	9,574,000	9,612,000
Noninterest expense	30,626,000	17,909,000	18,445,000	17,918,000	16,941,000	17,728,000	24,862,000	15,990,000		84,898,000	75,521,000	60,738,000
Income before income taxes	7,773,000	15,910,000	15,976,000	16,653,000	18,370,000	17,354,000	884,000	12,047,000		56,312,000	48,655,000	50,299,000
Income tax expense	2,088,000	4,633,000	4,623,000	4,507,000	5,138,000	4,979,000	(31,000)	3,238,000		15,851,000	13,324,000	26,471,000
Net income	5,685,000	11,277,000	11,353,000	$ 12,146,000	13,232,000	12,375,000	915,000	8,809,000		40,461,000	35,331,000	23,828,000
Total assets	4,109,463,000				3,096,562,000				$ 2,843,452,000	4,109,463,000	3,096,562,000	2,843,452,000
Loans, net of deferred fees	2,533,844,000				1,886,405,000				1,582,667,000	2,533,844,000	1,886,405,000	1,582,667,000
Goodwill	167,420,000				83,753,000				45,664,000	167,420,000	83,753,000	45,664,000
Business Combination, Acquisition Related Costs	9,879,000	661,000	540,000		139,000	199,000	8,214,000	615,000		11,080,000	9,167,000	671,000
Pre-tax acquisition costs	9,879,000	$ 661,000	$ 540,000		139,000	$ 199,000	$ 8,214,000	$ 615,000		11,080,000	9,167,000	671,000
Tax Cuts and Jobs Act of 2017 effect on re-measurement of net deferred tax assets									7,103,000			7,103,000
Banking
Operating Income
Interest income										130,971,000	115,147,000	95,027,000
Intersegment interest allocations										1,182,000	1,856,000	1,126,000
Total interest expense										10,847,000	7,822,000	5,387,000
Net interest income										121,306,000	109,181,000	90,766,000
Provision for loan losses										517,000	7,224,000	102,000
Net interest income after provision										120,789,000	101,957,000	90,664,000
Noninterest income										9,643,000	8,662,000	8,559,000
Noninterest expense										78,159,000	69,164,000	53,860,000
Intersegment expense allocations										547,000	753,000	528,000
Income before income taxes										52,820,000	42,208,000	45,891,000
Income tax expense										14,819,000	11,418,000	24,266,000
Net income										38,001,000	30,790,000	21,625,000
Total assets	4,045,801,000				3,028,721,000				2,780,286,000	4,045,801,000	3,028,721,000	2,780,286,000
Loans, net of deferred fees	2,487,864,000				1,832,815,000				1,533,841,000	2,487,864,000	1,832,815,000	1,533,841,000
Goodwill	154,376,000				70,709,000				32,620,000	154,376,000	70,709,000	32,620,000
Business Combination, Acquisition Related Costs										11,080,000	9,167,000
Pre-tax acquisition costs										11,080,000	9,167,000
Tax Cuts and Jobs Act of 2017 effect on re-measurement of net deferred tax assets												6,749,000
Factoring
Operating Income
Interest income										11,688,000	14,698,000	11,884,000
Intersegment interest allocations										(1,182,000)	(1,856,000)	(1,126,000)
Net interest income										10,506,000	12,842,000	10,758,000
Provision for loan losses										329,000	197,000	(3,000)
Net interest income after provision										10,177,000	12,645,000	10,761,000
Noninterest income										601,000	912,000	1,053,000
Noninterest expense										6,739,000	6,357,000	6,878,000
Intersegment expense allocations										(547,000)	(753,000)	(528,000)
Income before income taxes										3,492,000	6,447,000	4,408,000
Income tax expense										1,032,000	1,906,000	2,205,000
Net income										2,460,000	4,541,000	2,203,000
Total assets	63,662,000				67,841,000				63,166,000	63,662,000	67,841,000	63,166,000
Loans, net of deferred fees	45,980,000				53,590,000				48,826,000	45,980,000	53,590,000	48,826,000
Goodwill	13,044,000				13,044,000				$ 13,044,000	13,044,000	13,044,000	13,044,000
Tax Cuts and Jobs Act of 2017 effect on re-measurement of net deferred tax assets												354,000
HCC (Parent)
Operating Income
Total interest expense										2,314,000	2,315,000	1,394,000
Income before income taxes										17,223,000	11,655,000	12,450,000
Income tax expense										(1,481,000)	(1,515,000)	(1,300,000)
Net income										40,461,000	35,331,000	23,828,000
Total assets	$ 616,889,000				$ 407,068,000					$ 616,889,000	$ 407,068,000
Tri Valley Bank and United American Bank | Banking
Operating Income
Business Combination, Acquisition Related Costs												671,000
Pre-tax acquisition costs												$ 671,000

Parent Company only Condensed_3

Parent Company only Condensed Financial Information - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets
Cash and cash equivalents	$ 457,370	$ 164,568
Total assets	4,109,463	3,096,562	$ 2,843,452
Liabilities and Shareholders' Equity
Subordinated debt, net of issuance costs	39,554	39,369
Shareholder's equity	576,708	367,466	$ 271,239	$ 259,850
Total liabilities and shareholders' equity	4,109,463	3,096,562
HCC (Parent)
Assets
Cash and cash equivalents	20,260	21,358
Investment in subsidiary bank	594,868	384,516
Other assets	1,761	1,194
Total assets	616,889	407,068
Liabilities and Shareholders' Equity
Subordinated debt, net of issuance costs	39,554	39,369
Other liabilities	627	233
Shareholder's equity	576,708	367,466
Total liabilities and shareholders' equity	$ 616,889	$ 407,068

Parent Company only Condensed_4

Parent Company only Condensed Financial Information - Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Condensed statements of income
Interest expense	$ (3,242)	$ (2,625)	$ (2,573)	$ (2,407)	$ (2,318)	$ (2,159)	$ (1,816)	$ (1,529)	$ (10,847)	$ (7,822)	$ (5,387)
Income before income taxes	7,773	15,910	15,976	16,653	18,370	17,354	884	12,047	56,312	48,655	50,299
Equity in undistributed net income of subsidiary bank:
Income tax benefit	(2,088)	(4,633)	(4,623)	(4,507)	(5,138)	(4,979)	31	(3,238)	(15,851)	(13,324)	(26,471)
Net income	$ 5,685	$ 11,277	$ 11,353	$ 12,146	$ 13,232	$ 12,375	$ 915	$ 8,809	40,461	35,331	23,828
HCC (Parent)
Condensed statements of income
Dividend from subsidiary bank									22,500	17,000	16,000
Other Income									121		114
Interest expense									(2,314)	(2,315)	(1,394)
Other expenses									(3,084)	(3,030)	(2,270)
Income before income taxes									17,223	11,655	12,450
Equity in undistributed net income of subsidiary bank:
Undistributed net income of subsidiary bank									21,757	22,161	10,078
Income tax benefit									1,481	1,515	1,300
Net income									$ 40,461	$ 35,331	$ 23,828

Parent Company only Condensed_5

Parent Company only Condensed Financial Information - Statements of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net Income	$ 5,685	$ 11,277	$ 11,353	$ 12,146	$ 13,232	$ 12,375	$ 915	$ 8,809	$ 40,461	$ 35,331	$ 23,828
Adjustments to reconcile net income to net cash provided by operations:
Amortization of restricted stock award, net									1,283	1,109	912
Net cash provided by operating activities									50,343	48,572	41,358
Cash flows from financing activities:
Issuance of subordinated debt, net of issuance costs											39,073
Proceeds from exercise of stock options									1,626	2,667	1,368
Net cash provided by (used in) financing activities									(28,780)	(277,882)	246,052
Net increase (decrease) in cash and cash equivalents									292,802	(151,654)	50,119
Cash and cash equivalents, beginning of period				164,568				316,222	164,568	316,222	266,103
Cash and cash equivalents, end of period	457,370				164,568				457,370	164,568	316,222
HCC (Parent)
Cash flows from operating activities:
Net Income									40,461	35,331	23,828
Adjustments to reconcile net income to net cash provided by operations:
Amortization of restricted stock award, net									1,283	1,109	912
Equity in undistributed net income of subsidiary bank									(21,757)	(22,161)	(10,078)
Net change in other assets and liabilities									12	(64)	224
Net cash provided by operating activities									19,999	14,215	14,886
Cash flows from financing activities:
Equity investment in subsidiary bank											(20,000)
Payment of cash dividends									(22,723)	(18,464)	(15,238)
Issuance of subordinated debt, net of issuance costs											39,073
Proceeds from exercise of stock options									1,626	2,667	1,368
Net cash provided by (used in) financing activities									(21,097)	(15,797)	5,203
Net increase (decrease) in cash and cash equivalents									(1,098)	(1,582)	20,089
Cash and cash equivalents, beginning of period				$ 21,358				$ 22,940	21,358	22,940	2,851
Cash and cash equivalents, end of period	$ 20,260				$ 21,358				$ 20,260	$ 21,358	$ 22,940

Quarterly Financial Data (Una_3

Quarterly Financial Data (Unaudited) - Selected Unaudited Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Quarterly Financial Data (Unaudited)
Interest income	$ 42,471	$ 33,250	$ 33,489	$ 33,449	$ 35,378	$ 34,610	$ 31,980	$ 27,877	$ 142,659	$ 129,845	$ 106,911
Interest expense	3,242	2,625	2,573	2,407	2,318	2,159	1,816	1,529	10,847	7,822	5,387
Net interest income	39,229	30,625	30,916	31,042	33,060	32,451	30,164	26,348	131,812	122,023	101,524
Provision (credit) for loan losses	3,223	(576)	(740)	(1,061)	142	(425)	7,198	506	846	7,421	99
Net interest income after provision for loan losses	36,006	31,201	31,656	32,103	32,918	32,876	22,966	25,842	130,966	114,602	101,425
Noninterest income	2,393	2,618	2,765	2,468	2,393	2,206	2,780	2,195	10,244	9,574	9,612
Noninterest expense	30,626	17,909	18,445	17,918	16,941	17,728	24,862	15,990	84,898	75,521	60,738
Income before income taxes	7,773	15,910	15,976	16,653	18,370	17,354	884	12,047	56,312	48,655	50,299
Income tax expense	2,088	4,633	4,623	4,507	5,138	4,979	(31)	3,238	15,851	13,324	26,471
Net income	$ 5,685	$ 11,277	$ 11,353	$ 12,146	$ 13,232	$ 12,375	$ 915	$ 8,809	$ 40,461	$ 35,331	$ 23,828
Earnings per common share:
Basic (in dollars per share)	$ 0.10	$ 0.26	$ 0.26	$ 0.28	$ 0.31	$ 0.29	$ 0.02	$ 0.23	$ 0.87	$ 0.85	$ 0.63
Diluted (in dollars per share)	$ 0.10	$ 0.26	$ 0.26	$ 0.28	$ 0.30	$ 0.28	$ 0.02	$ 0.23	$ 0.84	$ 0.84	$ 0.62

Quarterly Financial Data (Una_4

Quarterly Financial Data (Unaudited) - Acquisition and Integration Costs (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Business Combinations
Pre-tax acquisition costs	$ 9,879,000	$ 661,000	$ 540,000	$ 139,000	$ 199,000	$ 8,214,000	$ 615,000		$ 11,080,000	$ 9,167,000	$ 671,000
Tax Cuts and Jobs Act of 2017 effect on re-measurement of net deferred tax assets								$ 7,103,000			7,103,000
Banking
Business Combinations
Pre-tax acquisition costs									$ 11,080,000	$ 9,167,000
Tax Cuts and Jobs Act of 2017 effect on re-measurement of net deferred tax assets											$ 6,749,000

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Jan. 23, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock		$ 0.48	$ 0.44	$ 0.40
Subsequent Event
Subsequent Event [Line Items]
Quarterly cash dividends declared to holders of common stock	$ 0.13