Parent Company only Condensed Financial Information

12 Months Ended

Dec. 31, 2011

Parent Company only Condensed Financial Information

Parent Company only Condensed Financial Information

(17) 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,
	2011		2010
	(Dollars in thousands)
Assets
Cash and cash equivalents	$	24,347	$	33,103
Investment in subsidiary bank		195,041		174,592
Investment in subsidiary trusts		702		702
Other assets		2,246		2,860
Total assets	$	222,336	$	211,257
Liabilities and Shareholder's Equity
Subordinated debt	$	23,702	$	23,702
Other liabilities		803		5,403
Shareholder's equity		197,831		182,152
Total liabilities and shareholder's equity	$	222,336	$	211,257

Condensed Statements of Operations

	For the Year Ended December 31,
	2011			2010			2009
	(Dollars in thousands)
Interest income	$	10		$	13		$	49
Dividend from subsidiary bank		—			—			5,000
Interest expense		(1,871	)		(1,878	)		(2,014	)
Other expenses		(2,232	)		(2,500	)		(2,287	)
Income (loss) before income taxes and undistributed net income (loss) of subsidiary bank		(4,093	)		(4,365	)		748
Equity in undistributed net income (loss) of subsidiary bank		14,348			(52,184	)		(14,843	)
Income tax benefit		1,116			692			2,110
Net income (loss)		11,371			(55,857	)		(11,985	)
Dividends and discount accretion on preferred stock		(2,333	)		(2,398	)		(2,376	)
Net income (loss) available to common shareholders	$	9,038		$	(58,255	)	$	(14,361	)

Condensed Statements of Cash Flows

	For the Year Ended December 31,
	2011			2010			2009
	(Dollars in thousands)
Cash flows from operating activities:
Net Income (loss)	$	11,371		$	(55,857	)	$	(11,985	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations:
Amortization of restricted stock award, net of forfeitures and taxes		75			89			84
Equity in undistributed loss/(net income) of subsidiary bank		(14,348	)		52,184			14,843
Net change in other assets and liabilities		(1,182	)		1,396			(1,455	)
Net cash provided by (used in) operating activities		(4,084	)		(2,188	)		1,487
Cash flows from investing activities:
Equity investment in subsidiary bank		—			(40,000	)		(5,000	)
Cash flows from financing activities:
Net change in note payable		—			—			(15,000	)
Payment of cash dividends — common stock		—			—			(236	)
Payment of cash dividends — preferred stock		(4,672	)		—			(1,467	)
Issuance of preferred stock, net of issuance costs		—			69,698			—
Net cash provided by (used in) financing activities		(4,672	)		69,698			(16,703	)
Net increase (decrease) in cash and cash equivalents		(8,756	)		27,510			(20,216	)
Cash and cash equivalents, beginning of year		33,103			5,593			25,809
Cash and cash equivalents, end of year	$	24,347		$	33,103		$	5,593