Heritage Commerce Corp (NASDAQ: HTBK) is a California community banking company that operates Heritage Bank of Commerce (HBC), a state-chartered bank headquartered in San Jose, California. The company makes money primarily through net interest income, the spread between interest earned on loans and investment securities and interest paid on deposits. HBC also operates Bay View Funding, a factoring subsidiary doing business as CSNK Working Capital Finance Corp. For FY2025, quarterly interest income ranged from $61.8 million to $67.0 million, with net interest income before provision for credit losses ranging from $43.4 million to $50.4 million per quarter. Noninterest income contributed a comparatively modest $2.7 million to $3.2 million per quarter in FY2025. HBC holds a 0.74% deposit market share in its seven-county Bay Area footprint, ranking fourteenth among commercial banks in that region as of June 30, 2025. As of the 10-K filing dated March 9, 2026, a pending merger with CVB Financial Corp (CVBF) would result in former HTBK shareholders owning approximately 23% of fully diluted CVBF shares.
- Revenue model
- Net interest income from loans and investment securities, funded primarily by customer deposits, including noninterest-bearing demand deposits. Average noninterest-bearing deposits were $1.29 billion in Q4 FY2025. Supplementary noninterest income from service fees and other banking fees contributed $2.7 to $3.2 million per quarter in FY2025.
- Products and services
- Commercial banking services including loans, deposit accounts, cashier's checks, safe deposit boxes, direct deposit, automated payroll services, electronic funds transfer, online bill pay, homeowner association services, remote and mobile deposit capture, ACH origination, electronic data interchange, and check imaging. Bay View Funding provides factoring and working capital finance services. HBC does not operate a trust department.
- Customers and end markets
- Small and mid-sized businesses in the San Francisco Bay Area, including clients requiring working capital finance through Bay View Funding. Average total deposits across the bank were approximately $4.7 billion per quarter in FY2025, and average total loans were approximately $3.5 billion per quarter in FY2025.
- Value-chain role
- Community bank and direct lender serving business clients in the Bay Area. Arranges loan participations with outside financial institutions for credits exceeding HBC's legal lending limit.
- Geographic exposure
- Operates sixteen full-service branch offices across seven California counties: Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara. Branch locations include San Jose, Oakland, Danville, Palo Alto, Fremont, Pleasanton, Hollister, San Francisco, Livermore, San Mateo, Los Altos, San Rafael, Los Gatos, Morgan Hill, and Walnut Creek.
- Competitors
- Large multi-billion dollar regional and national banks with 506 combined offices in HTBK's seven-county footprint, controlling 69.58% of deposit market share as of June 30, 2025 FDIC data, Other community banks operating in the San Francisco Bay Area
