Subsequent Events

12 Months Ended

Dec. 31, 2018

Subsequent Events

Subsequent Events

24) Subsequent Events

On January 24, 2019, the Company announced that its Board of Directors declared a $0.12 per share quarterly cash dividend to holders of common stock. The dividend will be paid on February 21, 2019 to shareholders of record on February 7, 2019.  

Heritage Bank of Commerce, the Company’s banking subsidiary, has two secured commercial real estate nonaccrual loans outstanding to entities affiliated with DC Solar Solutions, Inc (“DC Solar”), with an aggregate principal amount of approximately $3.3 million. In February, 2019, DC Solar and a number of its affiliates, including each of the borrowers of the loans, filed a Chapter 11 petition under the Bankruptcy Code. Also in February 2019, the Company became aware of an affidavit signed by a Federal Bureau of Investigation special agent filed in a related forfeiture action in the United States District Court for the Eastern District of California in which it is alleged that DC Solar, its principals and affiliates engaged in fraudulent conduct characterized as a “Ponzi scheme” involving tax credit investments. Neither Heritage Commerce Corp nor Heritage Bank of Commerce was an investor or a party in the DC Solar tax credit investments. There is no material effect on the Company’s financial statements as of or for the year ended December 31, 2018.