Parent Company only Condensed Financial Information

12 Months Ended

Dec. 31, 2015

Parent Company only Condensed Financial Information

Parent Company only Condensed Financial Information

21) 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,
	2015		2014
	(Dollars in thousands)
Assets
Cash and cash equivalents	$	1,686	$	10,159
Investment in subsidiary bank		246,357		173,453
Other assets		400		953
Total assets	$	248,443	$	184,565
Liabilities and Shareholder's Equity
Short-term borrowings		3,000		—
Other liabilities		7		207
Shareholder's equity		245,436		184,358
Total liabilities and shareholder's equity	$	248,443	$	184,565

Condensed Statements of Operations

	For the Year Ended December 31,
	2015			2014			2013
	(Dollars in thousands)
Dividend from subsidiary bank	$	—		$	—		$	16,000
Interest expense		(18	)		—			(229	)
Other expenses		(2,705	)		(2,033	)		(2,080	)
Income (loss) before income taxes and equity in net income of subsidiary bank		(2,723	)		(2,033	)		13,691
Equity in net income of subsidiary bank:
Reduction in contributed capital and distribution from subsidiary bank		—			—			(16,000	)
Net income of subsidiary bank		18,081			14,614			13,155
Income tax benefit		1,139			846			694
Net income		16,497			13,427			11,540
Dividends and discount accretion on preferred stock		(1,792	)		(1,008	)		(336	)
Net income available to common shareholders	$	14,705		$	12,419		$	11,204

Condensed Statements of Cash Flows

	For the Year Ended December 31,
	2015			2014			2013
	(Dollars in thousands)
Cash flows from operating activities:
Net Income	$	16,497		$	13,427		$	11,540
Adjustments to reconcile net income to net cash provided by (used in) operations:
Amortization of restricted stock award, net of forfeitures and taxes		265			(9	)		200
Equity in undistributed loss/(net income) of subsidiary bank		(18,081	)		(14,614	)		2,845
Net change in other assets and liabilities		269			(2,158	)		4,478
Net cash (used in) provided by operating activities		(1,050	)		(3,354	)		19,063
Cash flows from financing activities:
Repayment of subordinated debt		—			—			(9,279	)
Net change in purchased funds and other short-term borrowings		3,000			—			—
Payment of cash dividends		(10,738	)		(5,758	)		(1,916	)
Proceeds from issuance of common stock, net of issuance costs		315			262			88
Payment of repurchase of common stock warrant		—			—			(140	)
Net cash used in financing activities		(7,423	)		(5,496	)		(11,247	)
Net (decrease) increase in cash and cash equivalents		(8,473	)		(8,850	)		7,816
Cash and cash equivalents, beginning of year		10,159			19,009			11,193
Cash and cash equivalents, end of year	$	1,686		$	10,159		$	19,009