Parent Company only Condensed Financial Information

12 Months Ended

Dec. 31, 2013

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,
	2013		2012
	(Dollars in thousands)
Assets
Cash and cash equivalents	$	19,009	$	11,193
Investment in subsidiary bank		155,958		164,949
Investment in subsidiary trusts		—		279
Other assets		—		2,650
Total assets	$	174,967	$	179,071
Liabilities and Shareholder's Equity
Subordinated debt	$	—	$	9,279
Other liabilities		1,571		51
Shareholder's equity		173,396		169,741
Total liabilities and shareholder's equity	$	174,967	$	179,071

Condensed Statements of Income

	For the Year Ended December 31,
	2013			2012			2011
	(Dollars in thousands)
Interest income	$	—		$	1		$	10
Dividend from subsidiary bank		16,000			45,000			—
Interest expense		(229	)		(1,383	)		(1,871	)
Other expenses		(2,080	)		(2,615	)		(2,232	)
Income (loss) before income taxes and equity in net income of subsidiary bank		13,691			41,003			(4,093	)
Equity in net income of subsidiary bank:
Reduction in contributed capital and distribution from subsidiary bank		(16,000	)		(45,000	)		—
Net income of subsidiary bank		13,155			12,710			14,348
Income tax benefit		694			1,196			1,116
Net income		11,540			9,909			11,371
Dividends and discount accretion on preferred stock		(336	)		(1,206	)		(2,333	)
Net income available to common shareholders	$	11,204		$	8,703		$	9,038

Condensed Statements of Cash Flows

	For the Year Ended December 31,
	2013			2012			2011
	(Dollars in thousands)
Cash flows from operating activities:
Net Income	$	11,540		$	9,909		$	11,371
Adjustments to reconcile net income to net cash provided by (used in) operations:
Amortization of restricted stock award, net of forfeitures and taxes		200			148			75
Equity in undistributed loss/(net income) of subsidiary bank		2,845			32,290			(14,348	)
Net change in other assets and liabilities		4,478			(744	)		(1,182	)
Net cash provided by (used in) operating activities		19,063			41,603			(4,084	)
Cash flows from financing activities:
Repayment of subordinated debt		(9,279	)		(14,423	)		—
Payment of cash dividends		(1,916	)		(373	)		(4,672	)
Repayment of preferred stock		—			(40,000	)		—
Issuance of common stock, net of issuance costs		88			39			—
Payment of repurchase of common stock warrant		(140	)		—			—
Net cash used in financing activities		(11,247	)		(54,757	)		(4,672	)
Net increase (decrease) in cash and cash equivalents		7,816			(13,154	)		(8,756	)
Cash and cash equivalents, beginning of year		11,193			24,347			33,103
Cash and cash equivalents, end of year	$	19,009		$	11,193		$	24,347