UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) April 14, 2000
Heritage Commerce Corp
(Exact name of registrant as specified in its charter)
CA 00-23877 77-0469558
(State of other jurisdiction (Commission File (IRS Employer
of incorporation) Number) Identification No.)
150 Almaden Blvd., San Jose, CA 95113
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (408) 947-6900
None
(Former name or former address, if changed since last report.)
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Item 5. Other Events.
HERITAGE COMMERCE CORP REPORTS FINANCIAL RESULTS
FOR THE FIRST QUARTER OF 2000
Heritage Commerce Corp (the "Company") (Nasdaq: HTBK) today reported
consolidated earnings of $1,038,000, up 66% or $411,000 from $627,000 for the
first quarter of 1999. Earnings per diluted share for the first quarter of
2000 were $0.13, up 44% or $.04 from $0.09 per diluted share for the prior
year period.
The Directors of Heritage Commerce Corp, at their Board Meeting of January
20, 2000, declared a 10% stock dividend payable to Heritage Commerce Corp
shareholders of record as of February 7, 2000. The payable date of the
dividend was February 21, 2000. All per share data in this report has been
adjusted to reflect this dividend.
For the first quarter of 2000 as compared with the same period of the
previous year, net interest income grew by $1,455,000, or 29%; noninterest
income was $483,000, compared with $1,224,000 (primarily due to
disproportionate gains on sale of securities in 1999); noninterest expense
grew by $146,000, or 3%. The Company's net interest margin was 5.99% for the
quarter ended March 31, 2000, compared with 6.06% for the quarter ended March
31, 1999.
Total assets as of March 31, 2000 were $505,605,000, an increase of
$147,237,000, or 41%, from March 31, 1999, and an increase of $28,941,000, or
6%, from total assets of $476,664,000 at December 31, 1999. Total deposits as
of March 31, 2000 were $448,835,000, an increase of $126,789,000, or 39%,
from March 31, 1999, and an increase of $30,295,000, or 7%, from total deposits
of $418,540,000 at December 31, 1999.
Total portfolio loans as of March 31, 2000 were $310,005,000, an increase
of $78,731,000, or 34%, compared to March 31, 1999. Total portfolio loans as
of December 31, 1999 were $271,855,000. The Company's allowance for loan
losses was $5,616,000, or 1.81%, of total loans as of March 31, 2000. This
compares with an allowance for loan losses of $4,277,000, or 1.85%, and
$5,003,000, or 1.84%, of total loans at March 31, 1999 and December 31, 1999,
respectively. The Company's non-performing assets (NPA's) were $1,333,000 as
of March 31, 2000. NPA's were $2,269,000 as of March 31, 1999, and
$1,396,000 as of December 31, 1999.
The Company's shareholders' equity at March 31, 2000 stood at $45,548,000,
compared with $30,929,000 as of March 31, 1999. Book value per share totaled
$6.47 as of March 31, 2000, compared to $5.06 as of March 31, 1999. The
Company's leverage capital ratio stood at 9.9% at March 31, 2000. This
compared with a leverage ratio of 8.3% at March 31, 1999.
Heritage Commerce Corp, a bank holding company established February 17,
1998, is the parent company of three financial institutions, Heritage Bank of
Commerce, a commercial bank headquartered in the city of San Jose, Heritage
Bank East Bay, a commercial bank headquartered in the city of Fremont, with
an office in Danville, and Heritage Bank South Valley, a commercial bank
headquartered in the city of Morgan Hill.
The Company's common stock is listed on the Nasdaq National Market under
the symbol "HTBK".
Readers should carefully review the risk factors described in other
documents the Company files from time to time with the Securities and
Exchange Commission, including the Annual Report on Form 10-K for the year
ended December 31, 1999 and the Quarterly Reports on Form 10-Q filed by the
Company in fiscal 2000.
For further information about the Company's financial performance, contact
John Rossell, Chief Executive Officer, at (408) 947-6900 or visit the
Company's web site at www.herbank.com.
Forward Looking Statement Disclaimer
This release may contain forward-looking statements that are subject to
risks and uncertainties. Such risks and uncertainties may include but are
not necessarily limited to fluctuations in interest rates, inflation,
government regulations and general economic conditions, and competition
within the business areas in which the Company is conducting its operations,
including the real estate market in California and other factors beyond the
Company's control. Such risks and uncertainties could cause results for
subsequent interim periods or for the entire year to differ materially from
those indicated. For a discussion of factors which could cause results to
differ, please see the Company's reports on Forms 10-K and 10-Q as filed with
the Securities and Exchange Commission and the Company's press releases.
Readers should not place undue reliance on the forward-looking statements,
which reflect management's view only as of the date hereof. The Company
undertakes no obligation to publicly revise these forward-looking statements
to reflect subsequent events or circumstances.
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Condensed Financial Statements
(Dollars in Thousands except Per Share amounts)
At and For the At and For the
3 Months 3 Months
Ended Ended
March 31, 2000 March 31, 1999 Percent
(Unaudited) (Unaudited) Change
Statement of Income Data
Net Interest Income 6,448 4,993 29%
Provision for Loan Losses 600 643 -7%
Noninterest Income 483 1,224 -61%
Noninterest Expense 4,733 4,587 3%
Net Income 1,038 627 66%
Per Share Data
Earnings Per Share
Basic 0.15 0.10 50%
Diluted 0.13 0.09 44%
Book Value Per Common Share 6.47 5.06 28%
Weighted average shares
used in computing:
Basic 7,034,615 6,112,611 15%
Diluted 7,703,507 7,053,638 9%
Balance Sheet Data
Total Assets 505,605 358,368 41%
Securities, Available-For-Sale 35,896 52,413 -32%
Securities, Held-To-Maturity 13,823 13,867 0%
Loans Held-For-Sale 25,960 12,306 111%
Loans 310,005 231,274 34%
Allowance For Loan Losses 5,616 4,277 31%
Total Deposits 448,835 322,046 39%
Total Shareholders' Equity 45,548 30,929 47%
Unrealized Holding Gain
(loss) on Securities, Net (174) 225 -177%
Nonperforming Loans 1,333 2,269 -41%
Other Real Estate Owned - -
Selected Financial Ratios
Net Interest Margin 5.99% 6.06%
Return on Average Assets 0.89% 0.69%
Return on Average Equity 9.23% 8.20%
Allowance for Loan Losses
to Nonperforming Loans 421.31% 188.49%
Allowance for Loan Losses
to Total Loans 1.81% 1.85%
Leverage Ratio 9.85% 8.32%
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SIGNATURES
Under the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: April 14, 2000 HERITAGE COMMERCE CORP
By: /s/ Lawrence D. McGovern
Lawrence D. McGovern
Chief Financial Officer / Executive Vice President
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