8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 25, 2024

HERITAGE COMMERCE CORP

(Exact name of registrant as specified in its charter)

California	000-23877	77-0469558
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

224 Airport Parkway, San Jose, California	95110
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (408) 947-6900

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (See General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, No Par Value	HTBK	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the

Exchange Act. ☐

ITEM 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On July 25, 2024, Heritage Commerce Corp (the “Company”), the holding company for Heritage Bank of Commerce, issued a press release announcing preliminary unaudited results for the second quarter and six months ended June 30, 2024. A copy of the press release is attached as Exhibit 99.1 to this Current Report and is incorporated herein by reference.

The information in this report set forth under this Item 2.02 shall not be treated as “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated by reference into any registration statement or other filing pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as expressly stated by specific reference in such filing.

ITEM 8.01OTHER EVENTS

QUARTERLY DIVIDEND

On July 25, 2024, the Company announced that its Board of Directors declared a $0.13 per share quarterly cash dividend to holders of its common stock. The dividend will be paid on August 22, 2024, to shareholders of record at the close of the business day on August 8, 2024. A copy of the press release is attached as Exhibit 99.2 to this Current Report and is incorporated herein by reference.

SHARE REPURCHASE PROGRAM

On July 25, 2024, the Company announced that its Board of Directors adopted a share repurchase program under which the Company is authorized to repurchase up to $15 million of the Company’s shares of its issued and outstanding common stock. A copy of the press release is attached as Exhibit 99.3 to this Current Report and is incorporated herein by reference.

ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits.

99.1	Press Release, dated July 25, 2024, entitled “Heritage Commerce Corp Reports Increased Average Loans and Average Deposits and Enhanced Credit Quality”
99.2	Press Release, dated July 25, 2024, entitled “Heritage Commerce Corp Declares Regular Quarterly Cash Dividend of $0.13 Per Share”
99.3	Press Release, dated July 25, 2024, entitled “Heritage Commerce Corp Announces $15 Million Share Repurchase”
104	Cover Page Interactive Data File (embedded within XBRL document)

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: July 25, 2024

Heritage Commerce Corp

By: /s/ Lawrence D. McGovern

Lawrence D. McGovern

Executive Vice President and Chief Financial Officer

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EX-99.1

Exhibit 99.1

Heritage Commerce Corp Reports Increased Average Loans and Average Deposits

and Enhanced Credit Quality

San Jose, CA — July 25, 2024 — Heritage Commerce Corp (Nasdaq: HTBK), (the “Company”), the holding company for Heritage Bank of Commerce (the “Bank”), today announced that its second quarter 2024 net income was $9.2 million, or $0.15 per average diluted common share, compared to $10.2 million, or $0.17 per average diluted common share, for the first quarter of 2024, and $16.4 million, or $0.27 per average diluted common share, for the second quarter of 2023. For the six months ended June 30, 2024, net income was $19.4 million, or $0.32 per average diluted common share, compared to $35.3 million, or $0.58 per average diluted common share, for the six months ended June 30, 2023. All data are unaudited.

"In the first six months of 2024, we continued to invest in people and technology to achieve our Company’s growth, security and client service goals,” said Clay Jones, President and Chief Executive Officer. “Our strong credit quality metrics further improved, as nonperforming assets and classified assets were both down at the end of the second quarter of 2024 from the linked quarter. We continued to strengthen our allowance for credit losses on loans during the second quarter of 2024, which was driven by prudent credit risk management and the increase in loan balances.”

“Our loan portfolio, excluding loans held-for-sale, increased by $43.7 million at June 30, 2024, from the preceding quarter and increased by $91.0 million year-over-year,” said Mr. Jones. “Our total deposits remained steady at $4.4 billion at June 30, 2024, while average deposits increased during the second quarter of 2024 from the linked quarter.”

“On behalf of the Board of Directors, I would like to thank our dedicated bank team members for all they do to support our loyal clients, communities and dedicated shareholders, and we look forward to continued success in the second half of the year,” Mr. Jones said. “It is because of them that we remain well-positioned to execute on our growth objectives.”

Second Quarter Ended June 30, 2024

Operating Results, Liquidity Position, Financial Condition, Credit Quality, and Capital Management

(as of, or for the periods ended June 30, 2024, compared to March 31, 2024, and June 30, 2023, except as noted):

Operating Results:

♦ The following table indicates the ratios for the annualized return on average equity, average tangible common equity, average assets and average tangible assets for the periods indicated:

	For the Quarter Ended:						For the Six Months Ended:
	June 30,		March 31,		June 30,		June 30,		June 30,
(unaudited)	2024		2024		2023		2024		2023
Return on average equity	5.50	%	6.08	%	10.12	%	5.79	%	11.06	%
Return on average tangible common equity(1)	7.43	%	8.24	%	13.93	%	7.84	%	15.29	%
Return on average assets	0.71	%	0.79	%	1.25	%	0.75	%	1.35	%
Return on average tangible assets(1)	0.74	%	0.82	%	1.29	%	0.78	%	1.40	%

(1) This is a non-GAAP financial measure as defined and discussed under “Non-GAAP Financial Measures” below.

Net Interest Income:

♦ Net interest income decreased (2%) to $39.5 million for the second quarter of 2024, compared to $40.1 million for the first quarter of 2024. The non-GAAP fully tax equivalent (“FTE”) net interest margin contracted 8 basis points to 3.26% for the second quarter of 2024 from 3.34% for the first quarter of 2024, primarily due to higher rates paid on client deposits, partially offset by maturing securities invested in higher yielding overnight funds and higher average yields on loans.

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♦ Net interest income decreased (15%) to $39.5 million for the second quarter of 2024, compared to $46.3 million for the second quarter of 2023. The non-GAAP FTE net interest margin contracted 50 basis points to 3.26% for the second quarter of 2024, from 3.76% for the second quarter of 2023, primarily due to higher rates paid on client deposits, a decrease in the average balance of noninterest-bearing demand deposits, a decrease in average interest earning assets, and a decrease in the average balance of higher yielding Bay View Funding factored receivables, partially offset by an increase in the rate on core loans and overnight funds.

♦ For the first six months of 2024, net interest income decreased (17%) to $79.5 million, compared to $95.6 million for the first six months of 2023. The non-GAAP FTE net interest margin decreased 62 basis points to 3.30% for the first six months of 2024, from 3.92% for the first six months of 2023, primarily due to higher rates paid on client deposits, a decrease in the average balance of noninterest-bearing demand deposits, a decrease in average interest earning assets, and a decrease in the average balances of higher yielding Bay View Funding factored receivables, partially offset by an increase in the rate on core loans and overnight funds.

♦ The following tables set forth the estimated changes in the Company’s annual net interest income and economic value of equity (a non-GAAP financial measure) that would result from the designated instantaneous parallel shift in interest rates noted, and assuming a flat balance sheet with consistent product mix, as of June 30, 2024:

	Increase/(Decrease) in
	Estimated Net
CHANGE IN INTEREST RATES (basis points)	Interest Income(1)
(in $000's, unaudited)	Amount		Percent
+400	$	15,815	8.5	%
+300	$	11,832	6.4	%
+200	$	7,879	4.2	%
+100	$	3,953	2.1	%
0		—	—
−100	$	(5,545)	(3.0)	%
−200	$	(12,865)	(6.9)	%
−300	$	(22,246)	(12.0)	%
−400	$	(36,316)	(19.6)	%

	Increase/(Decrease) in
	Estimated Economic
CHANGE IN INTEREST RATES (basis points)	Value of Equity(1)
(in $000's, unaudited)	Amount		Percent
+400	$	108,119	9.1	%
+300	$	91,506	7.7	%
+200	$	68,864	5.8	%
+100	$	38,972	3.3	%
0		—	—
−100	$	(63,527)	(5.4)	%
−200	$	(154,537)	(13.0)	%
−300	$	(272,094)	(22.9)	%
−400	$	(410,354)	(34.6)	%

(1) Computations of prospective effects of hypothetical interest rate changes are for illustrative purposes only, are based on numerous assumptions including relative levels of market interest rates, loan prepayments and deposit decay, and should not be relied upon as indicative of actual results. These projections are forward-looking and should be considered in light of the Forward-Looking Statement Disclaimer below. Actual rates paid on deposits may differ from the hypothetical interest rates modeled due to competitive or market factors, which could affect any actual impact on net interest income.

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♦ The following tables present the average balance of loans outstanding, interest income, and the average yield for the periods indicated:

● The average yield on the total loan portfolio increased to 5.49% for the second quarter of 2024, compared to 5.44% for the first quarter of 2024, primarily due to higher loan yields on the core bank.

	For the Quarter Ended						For the Quarter Ended
	June 30, 2024						March 31, 2024
	Average		Interest		Average		Average		Interest		Average
(in $000’s, unaudited)	Balance		Income		Yield		Balance		Income		Yield
Loans, core bank	$	2,830,260	$	38,496	5.47	%	$	2,795,351	$	37,721	5.43	%
Prepayment fees		—		54	0.01	%		—		24	0.00	%
Bay View Funding factored receivables		54,777		2,914	21.40	%		53,511		2,838	21.33	%
Purchased residential mortgages		447,687		3,739	3.36	%		454,240		3,788	3.35	%
Loan fair value mark / accretion		(2,863)		267	0.04	%		(3,113)		229	0.03	%
Total loans (includes loans held-for-sale)	$	3,329,861	$	45,470	5.49	%	$	3,299,989	$	44,600	5.44	%

● The average yield on the total loan portfolio increased to 5.49% for the second quarter of 2024, compared to 5.47% for the second quarter of 2023, primarily due to increases in the prime rate, partially offset by a lower average balance of higher yielding Bay View Funding factored receivables for the second quarter of 2024.

	For the Quarter Ended						For the Quarter Ended
	June 30, 2024						June 30, 2023
	Average		Interest		Average		Average		Interest		Average
(in $000’s, unaudited)	Balance		Income		Yield		Balance		Income		Yield
Loans, core bank	$	2,830,260	$	38,496	5.47	%	$	2,688,370	$	35,996	5.37	%
Prepayment fees		—		54	0.01	%		—		73	0.01	%
Bay View Funding factored receivables		54,777		2,914	21.40	%		68,680		3,847	22.47	%
Purchased residential mortgages		447,687		3,739	3.36	%		478,220		3,829	3.21	%
Loan fair value mark / accretion		(2,863)		267	0.04	%		(3,929)		283	0.04	%
Total loans (includes loans held-for-sale)	$	3,329,861	$	45,470	5.49	%	$	3,231,341	$	44,028	5.47	%

● The average yield on the total loan portfolio remained flat at 5.46% for both the first six months of 2024 and 2023, as a lower average balance of higher yielding Bay View Funding factored receivables, a decrease in the accretion of loan purchase discount into interest income from acquired loans, and lower prepayment fees, were offset by increases in the prime rate for the first six months of 2024.

	For the Six Months Ended						For the Six Months Ended
	June 30, 2024						June 30, 2023
	Average		Interest		Average		Average		Interest		Average
(in $000’s, unaudited)	Balance		Income		Yield		Balance		Income		Yield
Loans, core bank	$	2,812,805	$	76,217	5.45	%	$	2,702,291	$	71,590	5.34	%
Prepayment fees		—		78	0.01	%		—		211	0.02	%
Bay View Funding factored receivables		54,144		5,752	21.36	%		73,193		7,848	21.62	%
Purchased residential mortgages		450,964		7,527	3.36	%		482,964		7,686	3.21	%
Loan fair value mark / accretion		(2,988)		496	0.04	%		(4,143)		805	0.06	%
Total loans (includes loans held-for-sale)	$	3,314,925	$	90,070	5.46	%	$	3,254,305	$	88,140	5.46	%

● During the second quarter of 2024, the Asset-based Lending division was reorganized into the core bank.

● In aggregate, the unamortized net purchase discount on total loans acquired was $2.7 million at June 30, 2024.

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♦ The following table presents the average balance of deposits and interest-bearing liabilities, interest expense, and the average rate for the periods indicated:

	For the Quarter Ended						For the Quarter Ended
	June 30, 2024						March 31, 2024
	Average		Interest		Average		Average		Interest		Average
(in $000’s, unaudited)	Balance		Expense		Rate		Balance		Expense		Rate
Deposits:
Demand, noninterest-bearing	$	1,127,145					$	1,177,078
Demand, interest-bearing		932,100	$	1,719	0.74	%		920,048	$	1,554	0.68	%
Savings and money market		1,104,589		7,867	2.86	%		1,067,581		6,649	2.50	%
Time deposits - under $100		10,980		46	1.68	%		10,945		42	1.54	%
Time deposits - $100 and over		228,248		2,245	3.96	%		221,211		2,064	3.75	%
Insured Cash Sweep ("ICS")/Certificate of Deposit Registry
Service ("CDARS") - interest-bearing demand, money market
and time deposits		991,483		7,207	2.92	%		963,287		6,611	2.76	%
Total interest-bearing deposits		3,267,400		19,084	2.35	%		3,183,072		16,920	2.14	%
Total deposits		4,394,545		19,084	1.75	%		4,360,150		16,920	1.56	%
Short-term borrowings		19		—	0.00	%		15		—	0.00	%
Subordinated debt, net of issuance costs		39,553		538	5.47	%		39,516		538	5.48	%
Total interest-bearing liabilities		3,306,972		19,622	2.39	%		3,222,603		17,458	2.18	%
Total interest-bearing liabilities and demand,
noninterest-bearing / cost of funds	$	4,434,117	$	19,622	1.78	%	$	4,399,681	$	17,458	1.60	%

● The average cost of total deposits increased to 1.75% for the second quarter of 2024, compared to 1.56% for the first quarter of 2024. The average cost of funds increased to 1.78% for the second quarter of 2024, compared to 1.60% for the first quarter of 2024. The average cost of deposits was 0.97% and the average cost of funds was 1.07% for the second quarter of 2023.

● While the cost of deposits increased for the second quarter of 2024, the cost of deposits remained relatively flat during the quarter.

● The average cost of total deposits increased to 1.65% for the first six months of 2024, compared to 0.76% for the first six months of 2023. The average cost of funds increased to 1.69% for the first six months of 2024, compared to 0.85% for the first six months of 2023.

● The increase in the average cost of total deposits and the average cost of funds for the second quarter and first six months of 2024 was primarily due to clients seeking higher yields and moving noninterest-bearing deposits to the Bank’s interest-bearing ICS/CDARS deposits and interest-bearing money market accounts and increases in market rates.

Provision for Credit Losses on Loans:

♦ During the second quarter of 2024, we recorded a provision for credit losses on loans of $471,000, compared to a $184,000 provision for credit losses on loans for the first quarter of 2024, and a provision for credit losses on loans of $260,000 for the second quarter of 2023.

♦ There was a provision for credit losses on loans of $655,000 for the six months ended June 30, 2024, compared to a $292,000 provision for credit losses on loans for the six months ended June 30, 2023.

Noninterest Income:

♦ Total noninterest income increased 11% to $2.3 million for the second quarter of 2024, compared to $2.0 million for the first quarter of 2024, and increased 10% from $2.1 million for the second quarter of 2023, primarily due to a higher gain on proceeds from company-owned life insurance and higher termination fees, partially offset by a lower gain on sales of SBA loans during the second quarter of 2024.

♦ Total noninterest income decreased (11%) to $4.3 million for the first six months of 2024, compared to $4.8 million for the first six months of 2023, primarily due to lower service charges and fees on deposit accounts, partially offset by a higher gain on proceeds from company-owned life insurance and higher termination fees for the first six months of 2024.

Noninterest Expense:

♦ Total noninterest expense for the second quarter of 2024 increased to $28.2 million, compared to $27.5 million for the first quarter of 2024, primarily due to higher salaries and employee benefits as a result of annual merit increases and staff additions, and higher information technology related expenses, partially offset by lower professional fees and marketing related expenses for

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the second quarter of 2024. Total noninterest expense for the second quarter of 2024 increased to $28.2 million, compared to $25.0 million for the second quarter of 2023, primarily due to higher salaries and employee benefits, rent expense included in occupancy and equipment, and information technology related expenses included in other noninterest expense.

♦ Total noninterest expense for the first six months of 2024 increased to $55.7 million, compared to $50.4 million for the first six months of 2023, primarily due to higher salaries and employee benefits, and information technology related expenses, homeowner association vendor payments, regulatory assessments, and ICS/CDARS fee expense included in other noninterest expense.

♦ Full time equivalent employees were 353 at June 30, 2024, compared to 351 at March 31, 2024, and 347 at June 30, 2023.

♦ The efficiency ratio increased to 67.55% for the second quarter of 2024, compared to 65.34% for the first quarter of 2024, and 51.67% for the second quarter of 2023. The efficiency ratio increased to 66.44% for the six months ended June 30, 2024 compared to 50.20% for the six months ended June 30, 2023. The increase in the efficiency ratio for the second quarter of 2024 and six months ended June 30, 2024 was due to both higher noninterest expense and lower net revenue. The efficiency ratio is a non-GAAP financial measure.

Income Tax Expense:

♦ Income tax expense was $3.8 million for the second quarter of 2024, compared to $4.3 million for the first quarter of 2024, and $6.7 million for the second quarter of 2023. The effective tax rate for the second quarter of 2024 was 29.4%, compared to 29.5% for the first quarter of 2024, and 29.0% for the second quarter of 2023.

♦ Income tax expense for the six months ended June 30, 2024 was $8.1 million, compared to $14.4 million for the six months ended June 30, 2023. The effective tax rate for six months ended June 30, 2024 was 29.4%, compared to 28.9% for the six months ended June 30, 2023.

Liquidity Position, Financial Condition, Credit Quality, and Capital Management:

Liquidity and Available Lines of Credit:

♦ The following table shows our liquidity, available lines of credit and the amounts outstanding at June 30, 2024:

LIQUIDITY AND AVAILABLE LINES OF CREDIT	Total				Remaining
(in $000’s, unaudited)	Available		Outstanding		Available
Excess funds at the Federal Reserve Bank ("FRB")	$	589,600	$	—	$	589,600
FRB discount window collateralized line of credit		1,404,998		—		1,404,998
Federal Home Loan Bank collateralized borrowing capacity		792,027		—		792,027
Unpledged investment securities (at fair value)		52,319		—		52,319
Federal funds purchase arrangements		90,000		—		90,000
Holding company line of credit		20,000		—		20,000
Total	$	2,948,944	$	—	$	2,948,944

● The Company’s total available liquidity and borrowing capacity was $3.0 billion at both June 30, 2024 and March 31, 2024, and $3.1 billion at June 30, 2023.

● The available liquidity and borrowing capacity was 66% of the Company’s total deposits and approximately 148% of the Bank’s estimated uninsured deposits at June 30, 2024. The available liquidity and borrowing capacity was 67% of the Company’s total deposits and approximately 149% of the Bank’s estimated uninsured deposits at March 31, 2024. The available liquidity and borrowing capacity was 69% of the Company’s total deposits and approximately 145% of the Bank’s estimated uninsured deposits at June 30, 2023.

● The loan to deposit ratio was 76.04% at June 30, 2024, compared to 75.06% at March 31, 2024, and 73.07% at June 30, 2023.

♦Total assets remained flat at $5.3 billion at June 30, 2024, March 31, 2024, and June 30, 2023.

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Investment Securities:

♦ Investment securities totaled $894.2 million at June 30, 2024, of which $273.0 million were in the securities available-for-sale portfolio (at fair value), and $621.2 million were in the securities held-to-maturity portfolio (at amortized cost, net of allowance for credit losses of $12,000). The fair value of the securities held-to-maturity portfolio was $527.4 million at June 30, 2024.

♦ The following table shows the balances of securities available-for-sale, at fair value, and the related pre-tax unrealized (loss) at the dates indicated:

SECURITIES AVAILABLE-FOR-SALE	June 30,		March 31,		June 30,
(in $000’s, unaudited)	2024		2024		2023
Balance (at fair value):
U.S. Treasury	$	218,682	$	347,453	$	421,146
Agency mortgage-backed securities		54,361		57,021		64,912
Total	$	273,043	$	404,474	$	486,058
Pre-tax unrealized (loss):
U.S. Treasury	$	(3,578)	$	(4,784)	$	(10,903)
Agency mortgage-backed securities		(4,815)		(4,895)		(5,659)
Total	$	(8,393)	$	(9,679)	$	(16,562)
Weighted average life (years)		1.39		1.15		1.64

● The pre-tax unrealized loss on the securities available-for-sale portfolio was ($8.4) million, or ($6.0) million net of taxes, which equaled 1% of total shareholders’ equity at June 30, 2024.

● The reduction in the securities available-for-sale portfolios was due to maturities and not due to any securities sold since June 30, 2023.

♦ The following table shows the balances of securities held-to-maturity, at amortized cost, and the related pre-tax unrecognized (loss) and allowance for credit losses at the dates indicated:

SECURITIES HELD-TO-MATURITY	June 30,		March 31,		June 30,
(in $000’s, unaudited)	2024		2024		2023
Balance (at amortized cost):
Agency mortgage-backed securities	$	589,386	$	604,458	$	648,337
Municipals — exempt from Federal tax(1)		31,804		31,803		33,771
Total(1)	$	621,190	$	636,261	$	682,108
Pre-tax unrecognized (loss):
Agency mortgage-backed securities	$	(92,058)	$	(92,332)	$	(95,285)
Municipals — exempt from Federal tax		(1,694)		(1,071)		(1,052)
Total	$	(93,752)	$	(93,403)	$	(96,337)
Allowance for credit losses on municipal securities	$	(12)	$	(12)	$	(13)
Weighted average life (years)		6.57		6.59		7.12

(1) Gross of the allowance for credit losses of ($12,000) at both June 30, 2024, and March 31, 2024, and ($13,000) at June 30, 2023.

● The pre-tax unrecognized loss on the securities held-to-maturity portfolio was ($93.8) million, or ($66.0) million net of taxes, which equaled 10% of total shareholders’ equity at June 30, 2024.

● The weighted average life of the securities held-to-maturity portfolio was 6.57 years at June 30, 2024, which includes Community Reinvestment Act mortgage-backed securities with longer maturities.

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♦ The unrealized and unrecognized losses in both the available-for-sale and held-to-maturity portfolios were due to higher interest rates at June 30, 2024 compared to when the securities were purchased. The issuers are of high credit quality and all principal amounts are expected to be repaid when the securities mature. The fair value is expected to recover as the securities approach their maturity date and/or market rates decline.

♦ The following are the projected cash flows from paydowns and maturities in the investment securities portfolio for the periods indicated based on the current interest rate environment:

			Agency
			Mortgage-
PROJECTED INVESTMENT SECURITIES			backed and
PAYDOWNS & MATURITIES	U.S.		Municipal
(in $000’s, unaudited)	Treasury		Securities		Total
Third quarter of 2024	$	37,500	$	21,455	$	58,955
Fourth quarter of 2024		9,000		19,436		28,436
First quarter of 2025		35,000		18,847		53,847
Second quarter of 2025		118,000		18,379		136,379
Third quarter of 2025		25,500		19,585		45,085
Fourth quarter of 2025		—		18,039		18,039
First quarter of 2026		—		17,341		17,341
Second quarter of 2026		—		16,630		16,630
Total	$	225,000	$	149,712	$	374,712

● The weighted average life of the total investment securities portfolio was 4.95 years at June 30, 2024, compared to 4.44 years at March 31, 2024, and 4.79 years at June 30, 2023.

● The increase in the weighted average life of the total investment securities portfolio at June 30, 2024 was due to short-term securities maturing.

Loans:

♦ The following table summarizes the distribution of loans, excluding loans held-for-sale, and the percentage of distribution in each category at the dates indicated:

LOANS	June 30, 2024				March 31, 2024				June 30, 2023
(in $000’s, unaudited)	Balance		% to Total		Balance		% to Total		Balance		% to Total
Commercial	$	477,929	14	%	$	452,231	14	%	$	466,354	14	%
Real estate:
CRE(1) - owner occupied		594,504	18	%		585,031	17	%		608,031	18	%
CRE(1) - non-owner occupied		1,283,323	38	%		1,271,184	38	%		1,147,313	35	%
Land and construction		125,374	4	%		129,712	4	%		162,816	5	%
Home equity		126,562	4	%		122,794	4	%		128,009	4	%
Multifamily		268,968	8	%		269,263	8	%		244,959	7	%
Residential mortgages		484,809	14	%		490,035	15	%		514,064	16	%
Consumer and other		18,758	< 1	%		16,439	< 1	%		17,635	1	%
Total Loans		3,380,227	100	%		3,336,689	100	%		3,289,181	100	%
Deferred loan costs (fees), net		(434)	—			(587)	—			(397)	—
Loans, net of deferred costs and fees	$	3,379,793	100	%	$	3,336,102	100	%	$	3,288,784	100	%

(1) Commercial Real Estate

● Loans, excluding loans held-for-sale, increased $43.7 million, or 1%, to $3.4 billion at June 30, 2024, compared to $3.3 billion at March 31, 2024, and increased $91.0 million, or 3%, from $3.3 billion at June 30, 2023. Loans, excluding residential mortgages, increased $48.9 million, or 2%, to $2.89 billion at June 30, 2024, compared to $2.85 billion at March 31, 2024, and increased $120.3 million, or 4%, from $2.77 billion at June 30, 2023.

● Commercial and industrial line utilization was 31% at June 30, 2024, compared to 28% at March 31, 2024, and 29% at June 30, 2023.

● CRE loans totaled $1.9 billion at June 30, 2024, of which 32% were owner occupied and 68% were investor CRE loans. There was also 32% of the CRE loan portfolio secured by owner occupied real estate at March 31, 2024, and 35% at June 30, 2023.

7

● During the second quarter of 2024, there were 32 new owner occupied and non-owner occupied CRE loans originated totaling $47 million with a weighted average loan-to-value (“LTV”) of 39%; the weighted average debt-service coverage ratio (“DSCR”) for the non-owner occupied portfolio was 2.61 times.

● The average loan size for all CRE loans was $1.6 million, and the average loan size for office CRE loans was also $1.6 million.

● The Company has personal guarantees on 92% of its CRE portfolio. A substantial portion of the unguaranteed CRE loans were made to credit-worthy non-profit organizations.

● Total office exposure (excluding medical/dental offices) in the CRE portfolio was $403 million, including 32 loans totaling approximately $74 million in San Jose, 21 loans totaling approximately $27 million in San Francisco, and loans totaling approximately $16 million, in Oakland, at June 30, 2024. Non-owner occupied CRE with office exposure totaled $312 million at June 30, 2024.

● At June 30, 2024, the weighted average LTV and DSCR for the entire non-owner occupied office portfolio were 41.8% and 1.78 times, respectively.

● Total medical/dental office exposure in the non-owner occupied CRE portfolio consisted of 15 loans totaling $12.6 million, with a weighted average LTV and DSCR of 37.8% and 2.39 times, respectively, at June 30, 2024.

● The following table presents the weighted average LTV and DSCR by collateral type for CRE loans at June 30, 2024:

	CRE - Non-owner Occupied								CRE - Owner Occupied						Total CRE
Collateral Type	Outstanding			LTV			DSCR		Outstanding			LTV			Outstanding			LTV
Retail		25	%		38.3	%		1.93		16	%		46.3	%		23	%		39.8	%
Industrial		19	%		40.0	%		2.39		32	%		42.7	%		23	%		41.0	%
Mixed-Use, Special
Purpose and Other		18	%		41.7	%		1.91		35	%		40.6	%		22	%		41.2	%
Office		20	%		41.8	%		1.78		17	%		43.7	%		19	%		42.3	%
Multifamily		17	%		42.4	%		1.94		0	%		0.0	%		13	%		42.4	%
Hotel/Motel		1	%		16.5	%		1.44		0	%		0.0	%		< 1	%		16.5	%
Total		100	%		40.5	%		1.99		100	%		42.7	%		100	%		41.1	%

● The following table presents the weighted average LTV and DSCR by county for CRE loans at June 30, 2024:

	CRE - Non-owner Occupied								CRE - Owner Occupied						Total CRE
County	Outstanding			LTV			DSCR		Outstanding			LTV			Outstanding			LTV
Santa Clara		24	%		38.1	%		2.24		34	%		40.4	%		27	%		38.9	%
Alameda		25	%		44.4	%		1.92		18	%		44.0	%		23	%		44.3	%
San Mateo		10	%		36.9	%		2.20		15	%		39.8	%		12	%		38.0	%
Out of Area		9	%		42.6	%		2.16		9	%		50.6	%		9	%		44.9	%
San Francisco		9	%		37.4	%		1.44		4	%		38.8	%		8	%		37.6	%
Contra Costa		7	%		42.0	%		1.73		8	%		48.1	%		7	%		43.8	%
Marin		7	%		46.6	%		1.94		2	%		53.1	%		5	%		47.1	%
Sonoma		2	%		41.0	%		2.22		2	%		43.3	%		2	%		41.5	%
Santa Cruz		2	%		33.3	%		1.74		1	%		45.7	%		2	%		35.2	%
Monterey		2	%		44.2	%		1.85		2	%		39.9	%		2	%		42.8	%
San Benito		1	%		35.1	%		2.14		3	%		39.4	%		2	%		37.3	%
Solano		1	%		32.2	%		1.98		1	%		35.5	%		1	%		33.0	%
Napa		1	%		29.4	%		2.24		1	%		52.3	%		< 1	%		37.3	%
Total		100	%		40.5	%		1.99		100	%		42.7	%		100	%		41.1	%

8

♦ The following table presents the maturity distribution of the Company’s loans, excluding loans held-for-sale, as of June 30, 2024. The table shows the distribution of such loans between those loans with predetermined (fixed) interest rates and those with variable (floating) interest rates. Floating rates generally fluctuate with changes in the prime rate as reflected in the Western Edition of The Wall Street Journal, and contractual repricing dates.

	Due in				Over One Year But
LOAN MATURITIES	One Year or Less				Less than Five Years				Over Five Years
(in $000’s, unaudited)	Balance		% to Total		Balance		% to Total		Balance		% to Total		Total
Loans with variable interest rates	$	365,849	40	%	$	270,487	30	%	$	267,524	30	%	$	903,860
Loans with fixed interest rates		89,027	4	%		693,576	28	%		1,693,764	68	%		2,476,367
Loans	$	454,876	13	%	$	964,063	29	%	$	1,961,288	58	%	$	3,380,227

● At June 30, 2024, approximately 27% of the Company’s loan portfolio consisted of floating interest rate loans, compared to 26% at March 31, 2024, and 29% at June 30, 2023.

Credit Quality:

♦ The following table summarizes the allowance for credit losses on loans (“ACLL”) for the periods indicated:

	At or For the Quarter Ended:									At or For the Six Months Ended:
ALLOWANCE FOR CREDIT LOSSES ON LOANS	June 30,			March 31,			June 30,			June 30,			June 30,
(in $000’s, unaudited)	2024			2024			2023			2024			2023
Balance at beginning of period	$	47,888		$	47,958		$	47,273		$	47,958		$	47,512
Charge-offs during the period		(510)			(358)			(24)			(868)			(404)
Recoveries during the period		105			104			294			209			403
Net (charge-offs) recoveries during the period		(405)			(254)			270			(659)			(1)
Provision for credit losses on loans during the period		471			184			260			655			292
Balance at end of period	$	47,954		$	47,888		$	47,803		$	47,954		$	47,803
Total loans, net of deferred fees	$	3,379,793		$	3,336,102		$	3,288,784		$	3,379,793		$	3,288,784
Total nonperforming loans	$	6,030		$	7,871		$	5,537		$	6,030		$	5,537
ACLL to total loans		1.42	%		1.44	%		1.45	%		1.42	%		1.45	%
ACLL to total nonperforming loans		795.26	%		608.41	%		863.34	%		795.26	%		863.34	%

● Net charge-offs of $405,000 for the second quarter of 2024 primarily consisted of $412,000 in advances associated with past due factored receivables at Bay View Funding due from a municipality. 

● The following table shows the drivers of change in ACLL for the first and second quarters of 2024:

DRIVERS OF CHANGE IN ACLL
(in $000’s, unaudited)
ACLL at December 31, 2023	$	47,958
Portfolio changes during the first quarter of 2024		(234)
Qualitative and quantitative changes during the first
quarter of 2024 including changes in economic forecasts		164
ACLL at March 31, 2024		47,888
Portfolio changes during the second quarter of 2024		616
Qualitative and quantitative changes during the second
quarter of 2024 including changes in economic forecasts		(550)
ACLL at June 30, 2024	$	47,954

♦ The following is a breakout of nonperforming assets (“NPAs”) at the dates indicated:

NONPERFORMING ASSETS	June 30, 2024				March 31, 2024				June 30, 2023
(in $000’s, unaudited)	Balance		% of Total		Balance		% of Total		Balance		% of Total
Land and construction loans	$	4,774	79	%	$	4,673	59	%	$	—	0	%
Commercial loans		900	15	%		1,127	14	%		1,306	23	%
Loans over 90 days past due and still accruing		248	4	%		1,951	25	%		2,262	41	%
Home equity and other loans		108	2	%		120	2	%		96	2	%
Residential mortgages		—	0	%		—	0	%		1,873	34	%
CRE loans		—	0	%		—	0	%		—	0	%
Total nonperforming assets	$	6,030	100	%	$	7,871	100	%	$	5,537	100	%

9

● There were 10 borrowers included in NPAs totaling $6.0 million, or 0.11% of total assets, at June 30, 2024, compared to 13 borrowers totaling $7.9 million, or 0.15% of total assets at March 31, 2024, and 13 borrowers totaling $5.5 million, or 0.10% of total assets, at June 30, 2023.

● There were no CRE loans included in NPAs at June 30, 2024, March 31, 2024, or June 30, 2023.

● There were no foreclosed assets on the balance sheet at June 30, 2024, March 31, 2024, or June 30, 2023.

● There were no Shared National Credits (“SNCs”) or material purchased participations included in NPAs or total loans at June 30, 2024, March 31, 2024, or June 30, 2023.

♦ Classified assets totaled $33.6 million, or 0.64% of total assets, at June 30, 2024, compared to $35.4 million, or 0.67% of total assets, at March 31, 2024, and $30.5 million, or 0.57% of total assets, at June 30, 2023.

Deposits:

♦ The following table summarizes the distribution of deposits and the percentage of distribution in each category at the dates indicated:

DEPOSITS	June 30, 2024				March 31, 2024				June 30, 2023
(in $000’s, unaudited)	Balance		% to Total		Balance		% to Total		Balance		% to Total
Demand, noninterest-bearing	$	1,187,320	27	%	$	1,242,059	28	%	$	1,319,844	29	%
Demand, interest-bearing		928,246	21	%		925,100	21	%		1,064,638	24	%
Savings and money market		1,126,520	25	%		1,124,900	25	%		1,075,835	24	%
Time deposits — under $250		39,046	1	%		38,105	1	%		44,520	1	%
Time deposits — $250 and over		203,886	4	%		200,739	4	%		171,852	4	%
ICS/CDARS — interest-bearing demand,
money market and time deposits		959,592	22	%		913,757	21	%		824,083	18	%
Total deposits	$	4,444,610	100	%	$	4,444,660	100	%	$	4,500,772	100	%

● Total deposits remained flat at $4.4 billion at both June 30, 2024 and March 31, 2024, and decreased ($56.2) million, or (1%) from $4.5 billion at June 30, 2023.

● Average deposits increased to $4.39 billion for the second quarter of 2024, compared to $4.36 billion for the first quarter of 2024, and remained relatively flat compared to $4.42 billion for the second quarter of 2023.

● Migration of client deposits into interest-bearing accounts resulted in an increase in ICS/CDARS deposits to $959.6 million at June 30, 2024, compared to $913.8 million at March 31, 2024, and $824.1 million at June 30, 2023.

● Noninterest-bearing demand deposits decreased ($54.7) million, or (4%), to $1.19 billion at June 30, 2024 from $1.24 billion at March 31, 2024, and decreased ($132.5) million, or (10%), from $1.32 billion at June 30, 2023, largely in response to the increasing interest rate environment.

● The Company had 25,033 deposit accounts at June 30, 2024, with an average balance of $178,000. At March 31, 2024, the Company had 24,730 deposit accounts, with an average balance of $180,000. At June 30, 2023, the Company had 24,404 deposit accounts, with an average balance of $187,000.

● Deposits from the Bank’s top 100 client relationships, representing 21% of the total number of accounts, totaled $2.1 billion, representing 47% of total deposits, with an average account size of $388,000 at June 30, 2024. At March 31, 2024, deposits from the Bank’s top 100 client relationships, representing 22% of the total number of accounts, totaled $2.1 billion, representing 46% of total deposits, with an average account size of $384,000. At June 30, 2023, deposits from the Bank’s top 100 client relationships, representing 22% of the total number of accounts, totaled $2.1 billion, representing 47% of total deposits, with an average account size of $401,000.

● The Bank’s uninsured deposits were approximately $1.99 billion, or 45% of the Company’s total deposits, at June 30, 2024, compared to $2.02 billion, or 45% of the Company’s total deposits, at March 31, 2024, and $2.15 billion, or 48% of the Company’s total deposits, at June 30, 2023.

10

Capital Management:

♦ The Company’s consolidated capital ratios exceeded regulatory guidelines and the Bank’s capital ratios exceeded regulatory guidelines under the prompt corrective action (“PCA”) regulatory guidelines for a well-capitalized financial institution, and the Basel III minimum regulatory requirements at June 30, 2024, as reflected in the following table:

					Well-capitalized
					Financial
					Institution		Basel III
	Heritage		Heritage		PCA		Minimum
	Commerce		Bank of		Regulatory		Regulatory
CAPITAL RATIOS (unaudited)	Corp		Commerce		Guidelines		Requirements (1)
Total Capital	15.6	%	15.1	%	10.0	%	10.5	%
Tier 1 Capital	13.4	%	13.9	%	8.0	%	8.5	%
Common Equity Tier 1 Capital	13.4	%	13.9	%	6.5	%	7.0	%
Tier 1 Leverage	10.2	%	10.6	%	5.0	%	4.0	%
Tangible common equity / tangible assets (2)	9.9	%	10.3	%	N/A		N/A

(1) Basel III minimum regulatory requirements for both the Company and the Bank include a 2.5% capital conservation buffer, except the Tier 1 Leverage ratio.

(2) This is a non-GAAP financial measure that represents shareholders’ equity minus goodwill and other intangible assets divided by total assets minus goodwill and other intangible assets.

♦ The following table reflects the components of accumulated other comprehensive loss, net of taxes, at the dates indicated:

ACCUMULATED OTHER COMPREHENSIVE LOSS	June 30,		March 31,		June 30,
(in $000’s, unaudited)	2024		2024		2023
Unrealized loss on securities available-for-sale	$	(6,022)	$	(6,936)	$	(11,822)
Split dollar insurance contracts liability		(2,913)		(2,861)		(3,187)
Supplemental executive retirement plan liability		(2,856)		(2,874)		(2,352)
Unrealized gain on interest-only strip from SBA loans		76		83		103
Total accumulated other comprehensive loss	$	(11,715)	$	(12,588)	$	(17,258)

♦ Tangible common equity was $504.0 million at June 30, 2024, compared to $500.6 million at March 31, 2024, and $476.2 million at June 30, 2023. Tangible book value per share was $8.22 at June 30, 2024, compared to $8.17 at March 31, 2024, and $7.80 at June 30, 2023. Tangible common equity and tangible book value per share are non-GAAP financial measures.

Heritage Commerce Corp, a bank holding company established in October 1997, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose, CA with full-service branches in Danville, Fremont, Gilroy, Hollister, Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo, San Rafael, and Walnut Creek. Heritage Bank of Commerce is an SBA Preferred Lender. Bay View Funding, a subsidiary of Heritage Bank of Commerce, is based in San Jose, CA and provides business-essential working capital factoring financing to various industries throughout the United States. For more information, please visit www.heritagecommercecorp.com. The contents of our website are not incorporated into, and do not perform a part of, this release or of our filings with the Securities and Exchange Commission.

Non-GAAP Financial Measures

Financial results are presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and prevailing practices in the banking industry. However, certain non-GAAP performance measures and ratios are used by management to evaluate and measure the Company’s performance. Management believes these non-GAAP financial measures are common in the banking industry, and may enhance comparability for peer comparison purposes. These non-GAAP financial measures should be supplemental to primary GAAP financial measures and should not be read in isolation or relied upon as a substitute for primary GAAP financial measures. A reconciliation of GAAP to non-GAAP financial measures are presented in the tables at the end of this earnings release under “Reconciliation of Non-GAAP Financial Measures.”

11

Forward-Looking Statement Disclaimer

Certain matters discussed in this press release constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, projected cash flows of our investment securities portfolio, the performance of our loan portfolio, estimated net interest income resulting from a shift in interest rates, expectation of high credit quality issuers ability to repay, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events. Any statements that reflect our belief about, confidence in, or expectations for future events, performance or condition should be considered forward-looking statements. Readers should not construe these statements as assurances of a given level of performance, nor as promises that we will take actions that we currently expect to take. All statements are subject to various risks and uncertainties, many of which are outside our control and some of which may fall outside our ability to predict or anticipate. Accordingly, our actual results may differ materially from our projected results, and we may take actions or experience events that we do not currently expect. Risks and uncertainties that could cause our financial performance to differ materially from our goals, plans, expectations and projections expressed in forward-looking statements include those set forth in our filings with the Securities and Exchange Commission, Item 1A of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, and the following: (1) factors that affect our liquidity and our ability to meet client demands for deposit withdrawals, including our cash on hand and the availability of funds from our lines of credit; (2) media items and consumer confidence as those factors affect depositors’ confidence in the banking system generally and in our bank specifically; (3) factors that affect the value and liquidity of our investment portfolios, particularly the values of securities available-for-sale; (4) market fluctuations that affect the costs we pay for sources of funding, including the interest we pay on deposits and loans; (5) effects of and changes in trade, monetary and fiscal policies and laws, including the interest rate policies of the Federal Open Market Committee of the Federal Reserve Board and other factors that affect market interest rates generally; (6) our ability to estimate accurately, and to establish adequate reserves against, the risk of loss associated with our loan and lease portfolio; (7) events and circumstances that affect our borrowers' financial condition, results of operations and cash flows, which may, during periods of economic uncertainty or decline, adversely affect those borrowers' ability to repay our loans timely and in full, or to comply with their other obligations under our loan agreements with those clients; (8) factors that affect the relative strength or weakness of loan guarantees and the ability of the guarantors to fulfill the obligations of their guaranty agreements; (9) geopolitical and domestic political developments, including recent, current and potential future wars and international and multinational conflicts, acts of terrorism, insurrection, piracy and civil unrest, and events reflecting or resulting from social instability, any of which can increase levels of political and economic unpredictability, contribute to rising energy and commodity prices, can affect the physical security of our assets and the assets of our Clients, and which may increase the volatility of financial markets; (10) current and future economic and market conditions in the United States generally or in the communities we serve, including the effects of declines in property values and overall slowdowns in economic growth should these events occur; (11) inflationary pressures and changes in the interest rate environment that reduce our margins and yields, the fair value of financial instruments or our level of loan originations, or increase the level of defaults, losses and prepayments on loans to Clients, whether held in the portfolio or in the secondary market; (12) changes in the level of nonperforming assets and charge offs and other credit quality measures, and their impact on the adequacy of our allowance for credit losses and our provision for credit losses; (13) volatility in credit and equity markets and its effect on the global economy; (14) conditions relating to the impact of recent and potential future pandemics, epidemics and other infectious illness outbreaks that may arise in the future, on our Clients, employees, businesses, liquidity, financial results and overall condition including severity and duration of the associated uncertainties in U.S. and global markets; (15) our ability to compete effectively with other banks and financial services companies and the effects of competition in the financial services industry on our business; (16) our ability to achieve loan growth and attract deposits in our market area; (17) risks associated with concentrations in real estate related loans; (18) the relative strength or weakness of the commercial and real estate markets where our borrowers are located, including related vacancy rates, and asset and market prices; (19) increased capital requirements for our continual growth or as imposed by banking regulators, which may require us to raise capital at a time when capital is not available on favorable terms or at all; (20) regulatory limits and practical factors that affect Heritage Bank of Commerce’s ability to pay dividends to the Company; (21) operational issues stemming from, and/or capital spending necessitated by, the potential need to adapt to industry changes in information technology systems, on which we are highly dependent; (22) our inability to attract, recruit, and retain qualified officers and other personnel could harm our ability to implement our strategic plan, impair our relationships with Clients and adversely affect our business, results of operations and growth prospects; (23) possible adjustment of the valuation of our deferred tax assets or of the goodwill associated with previous acquisitions; (24) our ability to keep pace with technological changes, including our ability to identify and address cyber-security risks, including those posed by the increasing use of artificial intelligence, such as data security breaches, “denial of service” attacks, “hacking” and identity theft affecting us or third party vendors or service providers; (25) inability of our framework to manage risks associated with our business, including operational risk and credit risk; (26) risks of loss of funding of the Small Business Administration (“SBA”) or SBA loan

12

programs, or changes in those programs; (27) compliance with applicable laws and governmental and regulatory requirements, including the Dodd-Frank Act and others relating to banking, consumer protection, securities, accounting and tax matters; (28) effect of changes in accounting policies and practices, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board and other accounting standard setters; (29) the expense and uncertain resolution of litigation matters whether occurring in the ordinary course of business or otherwise; (30) availability of and competition for acquisition opportunities; (31) geographic and sociopolitical factors that arise by virtue of the fact that we operate primarily in the general San Francisco Bay Area of Northern California; (32) risks of natural disasters (including earthquakes, fires, and flooding) and other events beyond our control; (33) actions taken, planned, or announced by federal, state, regional and local governments in response to the occurrence or threat of any of the foregoing; and (34) our success in managing the risks involved in the foregoing factors..

Member FDIC

For additional information, contact:

Debbie Reuter

EVP, Corporate Secretary

Direct: (408) 494-4542

Debbie.Reuter@herbank.com

13

	For the Quarter Ended:									Percent Change From:				For the Six Months Ended:
CONSOLIDATED INCOME STATEMENTS	June 30,			March 31,			June 30,			March 31,		June 30,		June 30,			June 30,			Percent
(in $000’s, unaudited)	2024			2024			2023			2024		2023		2024			2023			Change
Interest income	$	59,077		$	57,551		$	58,341		3	%	1	%	$	116,628		$	114,615		2	%
Interest expense		19,622			17,458			12,048		12	%	63	%		37,080			19,064		95	%
Net interest income before provision
for credit losses on loans		39,455			40,093			46,293		(2)	%	(15)	%		79,548			95,551		(17)	%
Provision for credit losses on loans		471			184			260		156	%	81	%		655			292		124	%
Net interest income after provision
for credit losses on loans		38,984			39,909			46,033		(2)	%	(15)	%		78,893			95,259		(17)	%
Noninterest income:
Service charges and fees on deposit
accounts		891			877			901		2	%	(1)	%		1,768			2,644		(33)	%
Increase in cash surrender value of
life insurance		521			518			502		1	%	4	%		1,039			995		4	%
Gain on proceeds from company-owned
life insurance		219			—			—		N/A		N/A			219			—		N/A
Termination fees		100			13			—		669	%	N/A			113			11		927	%
Servicing income		90			90			104		0	%	(13)	%		180			235		(23)	%
Gain on sales of SBA loans		76			178			199		N/A		(62)	%		254			275		(8)	%
Other		379			371			368		2	%	3	%		750			680		10	%
Total noninterest income		2,276			2,047			2,074		11	%	10	%		4,323			4,840		(11)	%
Noninterest expense:
Salaries and employee benefits		15,794			15,509			13,987		2	%	13	%		31,303			28,796		9	%
Occupancy and equipment		2,689			2,443			2,422		10	%	11	%		5,132			4,822		6	%
Professional fees		1,072			1,327			1,149		(19)	%	(7)	%		2,399			2,548		(6)	%
Other		8,633			8,257			7,433		5	%	16	%		16,890			14,226		19	%
Total noninterest expense		28,188			27,536			24,991		2	%	13	%		55,724			50,392		11	%
Income before income taxes		13,072			14,420			23,116		(9)	%	(43)	%		27,492			49,707		(45)	%
Income tax expense		3,838			4,254			6,713		(10)	%	(43)	%		8,092			14,387		(44)	%
Net income	$	9,234		$	10,166		$	16,403		(9)	%	(44)	%	$	19,400		$	35,320		(45)	%
PER COMMON SHARE DATA
(unaudited)
Basic earnings per share	$	0.15		$	0.17		$	0.27		(12)	%	(44)	%	$	0.32		$	0.58		(45)	%
Diluted earnings per share	$	0.15		$	0.17		$	0.27		(12)	%	(44)	%	$	0.32		$	0.58		(45)	%
Weighted average shares outstanding - basic		61,279,914			61,186,623			61,035,435		0	%	0	%		61,233,269			60,971,828		0	%
Weighted average shares outstanding - diluted		61,438,088			61,470,552			61,266,059		0	%	0	%		61,446,484			61,242,177		0	%
Common shares outstanding at period-end		61,292,094			61,253,625			61,091,155		0	%	0	%		61,292,094			61,091,155		0	%
Dividend per share	$	0.13		$	0.13		$	0.13		0	%	0	%	$	0.26		$	0.26		0	%
Book value per share	$	11.08		$	11.04		$	10.70		0	%	4	%	$	11.08		$	10.70		4	%
Tangible book value per share(1)	$	8.22		$	8.17		$	7.80		1	%	5	%	$	8.22		$	7.80		5	%
KEY FINANCIAL RATIOS
(unaudited)
Annualized return on average equity		5.50	%		6.08	%		10.12	%	(10)	%	(46)	%		5.79	%		11.06	%	(48)	%
Annualized return on average tangible
common equity(1)		7.43	%		8.24	%		13.93	%	(10)	%	(47)	%		7.84	%		15.29	%	(49)	%
Annualized return on average assets		0.71	%		0.79	%		1.25	%	(10)	%	(43)	%		0.75	%		1.35	%	(44)	%
Annualized return on average tangible assets(1)		0.74	%		0.82	%		1.29	%	(10)	%	(43)	%		0.78	%		1.40	%	(44)	%
Net interest margin (FTE)(1)		3.26	%		3.34	%		3.76	%	(2)	%	(13)	%		3.30	%		3.92	%	(16)	%
Efficiency ratio(1)		67.55	%		65.34	%		51.67	%	3	%	31	%		66.44	%		50.20	%	32	%
AVERAGE BALANCES
(in $000’s, unaudited)
Average assets	$	5,213,171		$	5,178,636		$	5,278,243		1	%	(1)	%	$	5,195,903		$	5,256,993		(1)	%
Average tangible assets(1)	$	5,037,673		$	5,002,597		$	5,100,399		1	%	(1)	%	$	5,020,134		$	5,078,851		(1)	%
Average earning assets	$	4,872,449		$	4,842,279		$	4,948,397		1	%	(2)	%	$	4,857,364		$	4,921,850		(1)	%
Average loans held-for-sale	$	1,503		$	2,749		$	4,166		(45)	%	(64)	%	$	2,126		$	3,764		(44)	%
Average total loans	$	3,328,358		$	3,297,240		$	3,227,175		1	%	3	%	$	3,312,799		$	3,250,541		2	%
Average deposits	$	4,394,545		$	4,360,150		$	4,424,041		1	%	(1)	%	$	4,377,347		$	4,420,019		(1)	%
Average demand deposits - noninterest-bearing	$	1,127,145		$	1,177,078		$	1,368,373		(4)	%	(18)	%	$	1,152,111		$	1,516,991		(24)	%
Average interest-bearing deposits	$	3,267,400		$	3,183,072		$	3,055,668		3	%	7	%	$	3,225,236		$	2,903,028		11	%
Average interest-bearing liabilities	$	3,306,972		$	3,222,603		$	3,157,722		3	%	5	%	$	3,264,788		$	2,997,119		9	%
Average equity	$	675,108		$	672,292		$	650,240		0	%	4	%	$	673,700		$	643,954		5	%
Average tangible common equity(1)	$	499,610		$	496,253		$	472,396		1	%	6	%	$	497,931		$	465,812		7	%

(1) This is a non-GAAP financial measure.

14

	For the Quarter Ended:
CONSOLIDATED INCOME STATEMENTS	June 30,			March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2024			2024			2023			2023			2023
Interest income	$	59,077		$	57,551		$	58,892		$	60,791		$	58,341
Interest expense		19,622			17,458			16,591			15,419			12,048
Net interest income before provision
for credit losses on loans		39,455			40,093			42,301			45,372			46,293
Provision for credit losses on loans		471			184			289			168			260
Net interest income after provision
for credit losses on loans		38,984			39,909			42,012			45,204			46,033
Noninterest income:
Service charges and fees on deposit
accounts		891			877			838			859			901
Increase in cash surrender value of
life insurance		521			518			519			517			502
Gain on proceeds from company-owned
life insurance		219			—			25			100			—
Termination fees		100			13			25			118			—
Servicing income		90			90			103			62			104
Gain on sales of SBA loans		76			178			—			207			199
Other		379			371			432			353			368
Total noninterest income		2,276			2,047			1,942			2,216			2,074
Noninterest expense:
Salaries and employee benefits		15,794			15,509			13,919			14,147			13,987
Occupancy and equipment		2,689			2,443			2,367			2,301			2,422
Professional fees		1,072			1,327			1,085			717			1,149
Other		8,633			8,257			8,120			8,006			7,433
Total noninterest expense		28,188			27,536			25,491			25,171			24,991
Income before income taxes		13,072			14,420			18,463			22,249			23,116
Income tax expense		3,838			4,254			5,135			6,454			6,713
Net income	$	9,234		$	10,166		$	13,328		$	15,795		$	16,403
PER COMMON SHARE DATA
(unaudited)
Basic earnings per share	$	0.15		$	0.17		$	0.22		$	0.26		$	0.27
Diluted earnings per share	$	0.15		$	0.17		$	0.22		$	0.26		$	0.27
Weighted average shares outstanding - basic		61,279,914			61,186,623			61,118,485			61,093,289			61,035,435
Weighted average shares outstanding - diluted		61,438,088			61,470,552			61,412,816			61,436,240			61,266,059
Common shares outstanding at period-end		61,292,094			61,253,625			61,146,835			61,099,155			61,091,155
Dividend per share	$	0.13		$	0.13		$	0.13		$	0.13		$	0.13
Book value per share	$	11.08		$	11.04		$	11.00		$	10.83		$	10.70
Tangible book value per share(1)	$	8.22		$	8.17		$	8.12		$	7.94		$	7.80
KEY FINANCIAL RATIOS
(unaudited)
Annualized return on average equity		5.50	%		6.08	%		7.96	%		9.54	%		10.12	%
Annualized return on average tangible
common equity(1)		7.43	%		8.24	%		10.84	%		13.06	%		13.93	%
Annualized return on average assets		0.71	%		0.79	%		1.00	%		1.16	%		1.25	%
Annualized return on average tangible assets(1)		0.74	%		0.82	%		1.04	%		1.20	%		1.29	%
Net interest margin (FTE)(1)		3.26	%		3.34	%		3.41	%		3.57	%		3.76	%
Efficiency ratio(1)		67.55	%		65.34	%		57.62	%		52.89	%		51.67	%
AVERAGE BALANCES
(in $000’s, unaudited)
Average assets	$	5,213,171		$	5,178,636		$	5,264,905		$	5,399,930		$	5,278,243
Average tangible assets(1)	$	5,037,673		$	5,002,597		$	5,088,264		$	5,222,692		$	5,100,399
Average earning assets	$	4,872,449		$	4,842,279		$	4,923,582		$	5,051,710		$	4,948,397
Average loans held-for-sale	$	1,503		$	2,749		$	1,612		$	2,765		$	4,166
Average total loans	$	3,328,358		$	3,297,240		$	3,280,817		$	3,254,715		$	3,227,175
Average deposits	$	4,394,545		$	4,360,150		$	4,454,750		$	4,573,621		$	4,424,041
Average demand deposits - noninterest-bearing	$	1,127,145		$	1,177,078		$	1,243,222		$	1,302,606		$	1,368,373
Average interest-bearing deposits	$	3,267,400		$	3,183,072		$	3,211,528		$	3,271,015		$	3,055,668
Average interest-bearing liabilities	$	3,306,972		$	3,222,603		$	3,251,034		$	3,310,485		$	3,157,722
Average equity	$	675,108		$	672,292		$	664,638		$	656,973		$	650,240
Average tangible common equity(1)	$	499,610		$	496,253		$	487,997		$	479,735		$	472,396

(1) This is a non-GAAP financial measure.

15

	End of Period:						Percent Change From:
CONSOLIDATED BALANCE SHEETS	June 30,		March 31,		June 30,		March 31,		June 30,
(in $000’s, unaudited)	2024		2024		2023		2024		2023
ASSETS
Cash and due from banks	$	37,497	$	32,543	$	42,551	15	%	(12)	%
Other investments and interest-bearing deposits
in other financial institutions		610,763		508,816		468,951	20	%	30	%
Securities available-for-sale, at fair value		273,043		404,474		486,058	(32)	%	(44)	%
Securities held-to-maturity, at amortized cost		621,178		636,249		682,095	(2)	%	(9)	%
Loans held-for-sale - SBA, including deferred costs		1,899		1,946		3,136	(2)	%	(39)	%
Loans:
Commercial		477,929		452,231		466,354	6	%	2	%
Real estate:
CRE - owner occupied		594,504		585,031		608,031	2	%	(2)	%
CRE - non-owner occupied		1,283,323		1,271,184		1,147,313	1	%	12	%
Land and construction		125,374		129,712		162,816	(3)	%	(23)	%
Home equity		126,562		122,794		128,009	3	%	(1)	%
Multifamily		268,968		269,263		244,959	0	%	10	%
Residential mortgages		484,809		490,035		514,064	(1)	%	(6)	%
Consumer and other		18,758		16,439		17,635	14	%	6	%
Loans		3,380,227		3,336,689		3,289,181	1	%	3	%
Deferred loan fees, net		(434)		(587)		(397)	(26)	%	9	%
Total loans, net of deferred costs and fees		3,379,793		3,336,102		3,288,784	1	%	3	%
Allowance for credit losses on loans		(47,954)		(47,888)		(47,803)	0	%	0	%
Loans, net		3,331,839		3,288,214		3,240,981	1	%	3	%
Company-owned life insurance		80,153		80,007		79,940	0	%	0	%
Premises and equipment, net		10,310		9,986		9,197	3	%	12	%
Goodwill		167,631		167,631		167,631	0	%	0	%
Other intangible assets		7,521		8,074		9,830	(7)	%	(23)	%
Accrued interest receivable and other assets		121,190		118,134		121,467	3	%	0	%
Total assets	$	5,263,024	$	5,256,074	$	5,311,837	0	%	(1)	%
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand, noninterest-bearing	$	1,187,320	$	1,242,059	$	1,319,844	(4)	%	(10)	%
Demand, interest-bearing		928,246		925,100		1,064,638	0	%	(13)	%
Savings and money market		1,126,520		1,124,900		1,075,835	0	%	5	%
Time deposits - under $250		39,046		38,105		44,520	2	%	(12)	%
Time deposits - $250 and over		203,886		200,739		171,852	2	%	19	%
ICS/CDARS - interest-bearing demand, money market
and time deposits		959,592		913,757		824,083	5	%	16	%
Total deposits		4,444,610		4,444,660		4,500,772	0	%	(1)	%
Subordinated debt, net of issuance costs		39,577		39,539		39,425	0	%	0	%
Accrued interest payable and other liabilities		99,638		95,579		117,970	4	%	(16)	%
Total liabilities		4,583,825		4,579,778		4,658,167	0	%	(2)	%
Shareholders’ Equity:
Common stock		508,343		507,578		505,075	0	%	1	%
Retained earnings		182,571		181,306		165,853	1	%	10	%
Accumulated other comprehensive loss		(11,715)		(12,588)		(17,258)	(7)	%	(32)	%
Total shareholders' equity		679,199		676,296		653,670	0	%	4	%
Total liabilities and shareholders’ equity	$	5,263,024	$	5,256,074	$	5,311,837	0	%	(1)	%

16

	End of Period:
CONSOLIDATED BALANCE SHEETS	June 30,		March 31,		December 31,		September 30,		June 30,
(in $000’s, unaudited)	2024		2024		2023		2023		2023
ASSETS
Cash and due from banks	$	37,497	$	32,543	$	41,592	$	40,076	$	42,551
Other investments and interest-bearing deposits
in other financial institutions		610,763		508,816		366,537		605,476		468,951
Securities available-for-sale, at fair value		273,043		404,474		442,636		457,194		486,058
Securities held-to-maturity, at amortized cost		621,178		636,249		650,565		664,681		682,095
Loans held-for-sale - SBA, including deferred costs		1,899		1,946		2,205		841		3,136
Loans:
Commercial		477,929		452,231		463,778		430,664		466,354
Real estate:
CRE - owner occupied		594,504		585,031		583,253		589,751		608,031
CRE - non-owner occupied		1,283,323		1,271,184		1,256,590		1,208,324		1,147,313
Land and construction		125,374		129,712		140,513		158,138		162,816
Home equity		126,562		122,794		119,125		124,477		128,009
Multifamily		268,968		269,263		269,734		253,129		244,959
Residential mortgages		484,809		490,035		496,961		503,006		514,064
Consumer and other		18,758		16,439		20,919		18,526		17,635
Loans		3,380,227		3,336,689		3,350,873		3,286,015		3,289,181
Deferred loan fees, net		(434)		(587)		(495)		(554)		(397)
Total loans, net of deferred fees		3,379,793		3,336,102		3,350,378		3,285,461		3,288,784
Allowance for credit losses on loans		(47,954)		(47,888)		(47,958)		(47,702)		(47,803)
Loans, net		3,331,839		3,288,214		3,302,420		3,237,759		3,240,981
Company-owned life insurance		80,153		80,007		79,489		79,607		79,940
Premises and equipment, net		10,310		9,986		9,857		9,707		9,197
Goodwill		167,631		167,631		167,631		167,631		167,631
Other intangible assets		7,521		8,074		8,627		9,229		9,830
Accrued interest receivable and other assets		121,190		118,134		122,536		131,106		121,467
Total assets	$	5,263,024	$	5,256,074	$	5,194,095	$	5,403,307	$	5,311,837
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Deposits:
Demand, noninterest-bearing	$	1,187,320	$	1,242,059	$	1,292,486	$	1,243,501	$	1,319,844
Demand, interest-bearing		928,246		925,100		914,066		1,004,185		1,064,638
Savings and money market		1,126,520		1,124,900		1,087,518		1,110,640		1,075,835
Time deposits - under $250		39,046		38,105		38,055		43,906		44,520
Time deposits - $250 and over		203,886		200,739		192,228		252,001		171,852
ICS/CDARS - interest-bearing demand, money market
and time deposits		959,592		913,757		854,105		921,224		824,083
Total deposits		4,444,610		4,444,660		4,378,458		4,575,457		4,500,772
Other short-term borrowings		—		—		—		—		—
Subordinated debt, net of issuance costs		39,577		39,539		39,502		39,463		39,425
Accrued interest payable and other liabilities		99,638		95,579		103,234		126,457		117,970
Total liabilities		4,583,825		4,579,778		4,521,194		4,741,377		4,658,167
Shareholders’ Equity:
Common stock		508,343		507,578		506,539		505,692		505,075
Retained earnings		182,571		181,306		179,092		173,707		165,853
Accumulated other comprehensive loss		(11,715)		(12,588)		(12,730)		(17,469)		(17,258)
Total shareholders' equity		679,199		676,296		672,901		661,930		653,670
Total liabilities and shareholders’ equity	$	5,263,024	$	5,256,074	$	5,194,095	$	5,403,307	$	5,311,837

17

	At or For the Quarter Ended:									Percent Change From:
CREDIT QUALITY DATA	June 30,			March 31,			June 30,			March 31,		June 30,
(in $000’s, unaudited)	2024			2024			2023			2024		2023
Nonaccrual loans - held-for-investment	$	5,782		$	5,920		$	3,275		(2)	%	77	%
Loans over 90 days past due
and still accruing		248			1,951			2,262		(87)	%	(89)	%
Total nonperforming loans		6,030			7,871			5,537		(23)	%	9	%
Foreclosed assets		—			—			—		N/A		N/A
Total nonperforming assets	$	6,030		$	7,871		$	5,537		(23)	%	9	%
Net charge-offs (recoveries) during the quarter	$	405		$	254		$	(270)		59	%	250	%
Provision for credit losses on loans during the quarter	$	471		$	184		$	260		156	%	81	%
Allowance for credit losses on loans	$	47,954		$	47,888		$	47,803		0	%	0	%
Classified assets	$	33,605		$	35,392		$	30,500		(5)	%	10	%
Allowance for credit losses on loans to total loans		1.42	%		1.44	%		1.45	%	(1)	%	(2)	%
Allowance for credit losses on loans to total nonperforming loans		795.26	%		608.41	%		863.34	%	31	%	(8)	%
Nonperforming assets to total assets		0.11	%		0.15	%		0.10	%	(27)	%	10	%
Nonperforming loans to total loans		0.18	%		0.24	%		0.17	%	(25)	%	6	%
Classified assets to Heritage Commerce Corp
Tier 1 capital plus allowance for credit losses on loans		6	%		6	%		6	%	0	%	0	%
Classified assets to Heritage Bank of Commerce
Tier 1 capital plus allowance for credit losses on loans		6	%		6	%		5	%	0	%	20	%
OTHER PERIOD-END STATISTICS
(in $000’s, unaudited)
Heritage Commerce Corp:
Tangible common equity (1)	$	504,047		$	500,591		$	476,209		1	%	6	%
Shareholders’ equity / total assets		12.91	%		12.87	%		12.31	%	0	%	5	%
Tangible common equity / tangible assets (2)		9.91	%		9.85	%		9.27	%	1	%	7	%
Loan to deposit ratio		76.04	%		75.06	%		73.07	%	1	%	4	%
Noninterest-bearing deposits / total deposits		26.71	%		27.94	%		29.32	%	(4)	%	(9)	%
Total capital ratio		15.6	%		15.6	%		15.4	%	0	%	1	%
Tier 1 capital ratio		13.4	%		13.4	%		13.2	%	0	%	2	%
Common Equity Tier 1 capital ratio		13.4	%		13.4	%		13.2	%	0	%	2	%
Tier 1 leverage ratio		10.2	%		10.2	%		9.7	%	0	%	5	%
Heritage Bank of Commerce:
Tangible common equity / tangible assets (2)		10.28	%		10.22	%		9.60	%	1	%	7	%
Total capital ratio		15.1	%		15.1	%		14.8	%	0	%	2	%
Tier 1 capital ratio		13.9	%		13.9	%		13.7	%	0	%	1	%
Common Equity Tier 1 capital ratio		13.9	%		13.9	%		13.7	%	0	%	1	%
Tier 1 leverage ratio		10.6	%		10.6	%		10.0	%	0	%	6	%

(1) This is a non-GAAP financial measure that represents shareholders' equity minus goodwill and other intangible assets.

(2) This is a non-GAAP financial measure that represents shareholders' equity minus goodwill and other intangible assets divided by total assets minus goodwill and other intangible assets.

18

	At or For the Quarter Ended:
CREDIT QUALITY DATA	June 30,			March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2024			2024			2023			2023			2023
Nonaccrual loans - held-for-investment	$	5,782		$	5,920		$	6,818		$	3,518		$	3,275
Loans over 90 days past due
and still accruing		248			1,951			889			1,966			2,262
Total nonperforming loans		6,030			7,871			7,707			5,484			5,537
Foreclosed assets		—			—			—			—			—
Total nonperforming assets	$	6,030		$	7,871		$	7,707		$	5,484		$	5,537
Net charge-offs (recoveries) during the quarter	$	405		$	254		$	33		$	269		$	(270)
Provision for credit losses on loans during the quarter	$	471		$	184		$	289		$	168		$	260
Allowance for credit losses on loans	$	47,954		$	47,888		$	47,958		$	47,702		$	47,803
Classified assets	$	33,605		$	35,392		$	31,763		$	31,062		$	30,500
Allowance for credit losses on loans to total loans		1.42	%		1.44	%		1.43	%		1.45	%		1.45	%
Allowance for credit losses on loans to total nonperforming loans		795.26	%		608.41	%		622.27	%		869.84	%		863.34	%
Nonperforming assets to total assets		0.11	%		0.15	%		0.15	%		0.10	%		0.10	%
Nonperforming loans to total loans		0.18	%		0.24	%		0.23	%		0.17	%		0.17	%
Classified assets to Heritage Commerce Corp
Tier 1 capital plus allowance for credit losses on loans		6	%		6	%		6	%		6	%		6	%
Classified assets to Heritage Bank of Commerce
Tier 1 capital plus allowance for credit losses on loans		6	%		6	%		5	%		5	%		5	%
OTHER PERIOD-END STATISTICS
(in $000’s, unaudited)
Heritage Commerce Corp:
Tangible common equity (1)	$	504,047		$	500,591		$	496,643		$	485,070		$	476,209
Shareholders’ equity / total assets		12.91	%		12.87	%		12.96	%		12.25	%		12.31	%
Tangible common equity / tangible assets (2)		9.91	%		9.85	%		9.90	%		9.28	%		9.27	%
Loan to deposit ratio		76.04	%		75.06	%		76.52	%		71.81	%		73.07	%
Noninterest-bearing deposits / total deposits		26.71	%		27.94	%		29.52	%		27.18	%		29.32	%
Total capital ratio		15.6	%		15.6	%		15.5	%		15.6	%		15.4	%
Tier 1 capital ratio		13.4	%		13.4	%		13.3	%		13.4	%		13.2	%
Common Equity Tier 1 capital ratio		13.4	%		13.4	%		13.3	%		13.4	%		13.2	%
Tier 1 leverage ratio		10.2	%		10.2	%		10.0	%		9.6	%		9.7	%
Heritage Bank of Commerce:
Tangible common equity / tangible assets (2)		10.28	%		10.22	%		10.26	%		9.62	%		9.60	%
Total capital ratio		15.1	%		15.1	%		14.9	%		15.0	%		14.8	%
Tier 1 capital ratio		13.9	%		13.9	%		13.8	%		13.9	%		13.7	%
Common Equity Tier 1 capital ratio		13.9	%		13.9	%		13.8	%		13.9	%		13.7	%
Tier 1 leverage ratio		10.6	%		10.6	%		10.4	%		10.0	%		10.0	%

(1) This is a non-GAAP financial measure that represents shareholders' equity minus goodwill and other intangible assets.

(2) This is a non-GAAP financial measure that represents shareholders' equity minus goodwill and other intangible assets divided by total assets minus goodwill and other intangible assets.

19

	For the Quarter Ended						For the Quarter Ended
	June 30, 2024						March 31, 2024
			Interest		Average				Interest		Average
NET INTEREST INCOME AND NET INTEREST MARGIN	Average		Income/		Yield/		Average		Income/		Yield/
(in $000’s, unaudited)	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Loans, gross (1)(2)	$	3,329,861	$	45,470	5.49	%	$	3,299,989	$	44,600	5.44	%
Securities - taxable		942,532		5,483	2.34	%		1,042,484		6,183	2.39	%
Securities - exempt from Federal tax (3)		31,803		285	3.60	%		31,939		286	3.60	%
Other investments and interest-bearing deposits
in other financial institutions		568,253		7,899	5.59	%		467,867		6,542	5.62	%
Total interest earning assets (3)		4,872,449		59,137	4.88	%		4,842,279		57,611	4.79	%
Cash and due from banks		33,419						33,214
Premises and equipment, net		10,216						10,015
Goodwill and other intangible assets		175,498						176,039
Other assets		121,589						117,089
Total assets	$	5,213,171					$	5,178,636
Liabilities and shareholders’ equity:
Deposits:
Demand, noninterest-bearing	$	1,127,145					$	1,177,078
Demand, interest-bearing		932,100		1,719	0.74	%		920,048		1,554	0.68	%
Savings and money market		1,104,589		7,867	2.86	%		1,067,581		6,649	2.50	%
Time deposits - under $100		10,980		46	1.68	%		10,945		42	1.54	%
Time deposits - $100 and over		228,248		2,245	3.96	%		221,211		2,064	3.75	%
ICS/CDARS - interest-bearing demand, money market
and time deposits		991,483		7,207	2.92	%		963,287		6,611	2.76	%
Total interest-bearing deposits		3,267,400		19,084	2.35	%		3,183,072		16,920	2.14	%
Total deposits		4,394,545		19,084	1.75	%		4,360,150		16,920	1.56	%
Short-term borrowings		19		—	0.00	%		15		—	0.00	%
Subordinated debt, net of issuance costs		39,553		538	5.47	%		39,516		538	5.48	%
Total interest-bearing liabilities		3,306,972		19,622	2.39	%		3,222,603		17,458	2.18	%
Total interest-bearing liabilities and demand,
noninterest-bearing / cost of funds		4,434,117		19,622	1.78	%		4,399,681		17,458	1.60	%
Other liabilities		103,946						106,663
Total liabilities		4,538,063						4,506,344
Shareholders’ equity		675,108						672,292
Total liabilities and shareholders’ equity	$	5,213,171					$	5,178,636
Net interest income / margin (3)				39,515	3.26	%				40,153	3.34	%
Less tax equivalent adjustment (3)				(60)						(60)
Net interest income			$	39,455	3.26	%			$	40,093	3.33	%

(1) Includes loans held-for-sale. Nonaccrual loans are included in average balances.

(2) Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $117,000 for the second quarter of 2024, compared to $160,000 for the first quarter of 2024. Prepayment fees totaled $54,000 for the second quarter of 2024, compared to $24,000 for the first quarter of 2024.

(3) Reflects the non-GAAP FTE adjustment for Federal tax-exempt income based on a 21% tax rate.

20

	For the Quarter Ended						For the Quarter Ended
	June 30, 2024						June 30, 2023
			Interest		Average				Interest		Average
NET INTEREST INCOME AND NET INTEREST MARGIN	Average		Income/		Yield/		Average		Income/		Yield/
(in $000’s, unaudited)	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Loans, gross (1)(2)	$	3,329,861	$	45,470	5.49	%	$	3,231,341	$	44,028	5.47	%
Securities - taxable		942,532		5,483	2.34	%		1,147,375		6,982	2.44	%
Securities - exempt from Federal tax (3)		31,803		285	3.60	%		34,070		302	3.56	%
Other investments and interest-bearing deposits
in other financial institutions		568,253		7,899	5.59	%		535,611		7,092	5.31	%
Total interest earning assets (3)		4,872,449		59,137	4.88	%		4,948,397		58,404	4.73	%
Cash and due from banks		33,419						35,159
Premises and equipment, net		10,216						9,190
Goodwill and other intangible assets		175,498						177,844
Other assets		121,589						107,653
Total assets	$	5,213,171					$	5,278,243
Liabilities and shareholders’ equity:
Deposits:
Demand, noninterest-bearing	$	1,127,145					$	1,368,373
Demand, interest-bearing		932,100		1,719	0.74	%		1,118,200		1,788	0.64	%
Savings and money market		1,104,589		7,867	2.86	%		1,109,347		4,638	1.68	%
Time deposits - under $100		10,980		46	1.68	%		11,610		20	0.69	%
Time deposits - $100 and over		228,248		2,245	3.96	%		201,600		1,410	2.81	%
ICS/CDARS - interest-bearing demand, money market
and time deposits		991,483		7,207	2.92	%		614,911		2,867	1.87	%
Total interest-bearing deposits		3,267,400		19,084	2.35	%		3,055,668		10,723	1.41	%
Total deposits		4,394,545		19,084	1.75	%		4,424,041		10,723	0.97	%
Short-term borrowings		19		—	0.00	%		62,653		787	5.04	%
Subordinated debt, net of issuance costs		39,553		538	5.47	%		39,401		538	5.48	%
Total interest-bearing liabilities		3,306,972		19,622	2.39	%		3,157,722		12,048	1.53	%
Total interest-bearing liabilities and demand,
noninterest-bearing / cost of funds		4,434,117		19,622	1.78	%		4,526,095		12,048	1.07	%
Other liabilities		103,946						101,908
Total liabilities		4,538,063						4,628,003
Shareholders’ equity		675,108						650,240
Total liabilities and shareholders’ equity	$	5,213,171					$	5,278,243
Net interest income / margin (3)				39,515	3.26	%				46,356	3.76	%
Less tax equivalent adjustment (3)				(60)						(63)
Net interest income			$	39,455	3.26	%			$	46,293	3.75	%

(1) Includes loans held-for-sale. Nonaccrual loans are included in average balances.

(2) Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $117,000 for the second quarter of 2024, compared to $94,000 for the second quarter of 2023. Prepayment fees totaled $54,000 for the second quarter of 2024, compared to $73,000 for the second quarter of 2023.

(3) Reflects the non-GAAP FTE adjustment for Federal tax-exempt income based on a 21% tax rate.

21

	For the Six Months Ended						For the Six Months Ended
	June 30, 2024						June 30, 2023
			Interest		Average				Interest		Average
NET INTEREST INCOME AND NET INTEREST MARGIN	Average		Income/		Yield/		Average		Income/		Yield/
(in $000’s, unaudited)	Balance		Expense		Rate		Balance		Expense		Rate
Assets:
Loans, gross (1)(2)	$	3,314,925	$	90,070	5.46	%	$	3,254,305	$	88,140	5.46	%
Securities - taxable		992,508		11,666	2.36	%		1,154,160		14,038	2.45	%
Securities - exempt from Federal tax (3)		31,871		571	3.60	%		35,036		615	3.54	%
Other investments, interest-bearing deposits in other
financial institutions and Federal funds sold		518,060		14,441	5.61	%		478,349		11,951	5.04	%
Total interest earning assets (3)		4,857,364		116,748	4.83	%		4,921,850		114,744	4.70	%
Cash and due from banks		33,316						36,354
Premises and equipment, net		10,115						9,229
Goodwill and other intangible assets		175,769						178,142
Other assets		119,339						111,418
Total assets	$	5,195,903					$	5,256,993
Liabilities and shareholders’ equity:
Deposits:
Demand, noninterest-bearing	$	1,152,111					$	1,516,991
Demand, interest-bearing		926,074		3,273	0.71	%		1,167,690		3,264	0.56	%
Savings and money market		1,086,085		14,516	2.69	%		1,196,774		8,127	1.37	%
Time deposits - under $100		10,962		88	1.61	%		11,943		30	0.51	%
Time deposits - $100 and over		224,730		4,309	3.86	%		182,430		2,255	2.49	%
ICS/CDARS - interest-bearing demand, money market
and time deposits		977,385		13,818	2.84	%		344,191		2,948	1.73	%
Total interest-bearing deposits		3,225,236		36,004	2.24	%		2,903,028		16,624	1.15	%
Total deposits		4,377,347		36,004	1.65	%		4,420,019		16,624	0.76	%
Short-term borrowings		17		—	0.00	%		54,709		1,365	5.03	%
Subordinated debt, net of issuance costs		39,535		1,076	5.47	%		39,382		1,075	5.50	%
Total interest-bearing liabilities		3,264,788		37,080	2.28	%		2,997,119		19,064	1.28	%
Total interest-bearing liabilities and demand,
noninterest-bearing / cost of funds		4,416,899		37,080	1.69	%		4,514,110		19,064	0.85	%
Other liabilities		105,304						98,929
Total liabilities		4,522,203						4,613,039
Shareholders’ equity		673,700						643,954
Total liabilities and shareholders’ equity	$	5,195,903					$	5,256,993
Net interest income / margin (3)				79,668	3.30	%				95,680	3.92	%
Less tax equivalent adjustment (3)				(120)						(129)
Net interest income			$	79,548	3.29	%			$	95,551	3.91	%

(1) Includes loans held-for-sale. Nonaccrual loans are included in average balances.

(2) Yield amounts earned on loans include fees and costs. The accretion of net deferred loan fees into loan interest income was $277,000 for the first six months of 2024, compared to $394,000 for the first six months of 2023. Prepayment fees totaled $78,000 for the first six months of 2024, compared to $211,000 for the first six months of 2023.

(3) Reflects the non-GAAP FTE adjustment for Federal tax-exempt income based on a 21% tax rate.

22

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

♦ Management considers tangible book value per share as a useful measurement of the Company’s equity. The Company references the return on average tangible common equity and the return on average tangible assets as measurements of profitability.

♦ The following table summarizes components of the tangible book value per share at the dates indicated:

TANGIBLE BOOK VALUE PER SHARE	June 30,		March 31,		December 31,		September 30,		June 30,
(in $000’s, unaudited)	2024		2024		2023		2023		2023
Capital components:
Total Equity (GAAP)	$	679,199	$	676,296	$	672,901	$	661,930	$	653,670
Less: Preferred Stock		—		—		—		—		—
Total Common Equity		679,199		676,296		672,901		661,930		653,670
Less: Goodwill		(167,631)		(167,631)		(167,631)		(167,631)		(167,631)
Less: Other Intangible Assets		(7,521)		(8,074)		(8,627)		(9,229)		(9,830)
Total Tangible Common Equity (non-GAAP)	$	504,047	$	500,591	$	496,643	$	485,070	$	476,209
Common shares outstanding at period-end		61,292,094		61,253,625		61,146,835		61,099,155		61,091,155
Tangible book value per share (non-GAAP)	$	8.22	$	8.17	$	8.12	$	7.94	$	7.80

♦ The following tables summarize components of the annualized return on average tangible common equity and the annualized return on average tangible assets for the periods indicated:

RETURN ON AVERAGE TANGIBLE COMMON	For the Quarter Ended:
EQUITY AND AVERAGE TANGIBLE COMMON ASSETS	June 30,			March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2024			2024				2023		2023			2023
Net income	$	9,234		$	10,166		$	13,328		$	15,795		$	16,403
Average tangible common equity components:
Average Equity (GAAP)	$	675,108		$	672,292		$	664,638		$	656,973		$	650,240
Less: Goodwill		(167,631)			(167,631)			(167,631)			(167,631)			(167,631)
Less: Other Intangible Assets		(7,867)			(8,408)			(9,010)			(9,607)			(10,213)
Total Average Tangible Common Equity (non-GAAP)	$	499,610		$	496,253		$	487,997		$	479,735		$	472,396
Annualized return on average tangible common equity (non-GAAP)		7.43	%		8.24	%		10.84	%		13.06	%		13.93	%
Average tangible assets components:
Average Assets (GAAP)	$	5,213,171		$	5,178,636		$	5,264,905		$	5,399,930		$	5,278,243
Less: Goodwill		(167,631)			(167,631)			(167,631)			(167,631)			(167,631)
Less: Other Intangible Assets		(7,867)			(8,408)			(9,010)			(9,607)			(10,213)
Total Average Tangible Assets (non-GAAP)	$	5,037,673		$	5,002,597		$	5,088,264		$	5,222,692			5,100,399
Annualized return on average tangible assets (non-GAAP)		0.74	%		0.82	%		1.04	%		1.20	%		1.29	%

RETURN ON AVERAGE TANGIBLE COMMON	For the Six Months Ended:
EQUITY AND AVERAGE TANGIBLE COMMON ASSETS	June 30,			June 30,
(in $000’s, unaudited)	2024			2023
Net income	$	19,400		$	35,320
Average tangible common equity components:
Average Equity (GAAP)	$	673,700		$	643,954
Less: Goodwill		(167,631)			(167,631)
Less: Other Intangible Assets		(8,138)			(10,511)
Total Average Tangible Common Equity (non-GAAP)	$	497,931		$	465,812
Annualized return on average tangible common equity (non-GAAP)		7.84	%		15.29	%
Average tangible assets components:
Average Assets (GAAP)	$	5,195,903		$	5,256,993
Less: Goodwill		(167,631)			(167,631)
Less: Other Intangible Assets		(8,138)			(10,511)
Total Average Tangible Assets (non-GAAP)	$	5,020,134			5,078,851
Annualized return on average tangible assets (non-GAAP)		0.78	%		1.40	%

23

♦ Management reviews yields on certain asset categories and the net interest margin of the Company on an FTE basis. In this non-GAAP presentation, net interest income is adjusted to reflect tax-exempt interest income on an equivalent before-tax basis using tax rates effective as of the end of the period. This measure ensures comparability of net interest income arising from both taxable and tax-exempt sources. The following tables summarize components of FTE net interest income of the Company for the periods indicated:

	For the Quarter Ended:
	June 30,			March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2024			2024			2023			2023			2023
Net interest income before
credit losses on loans (GAAP)	$	39,455		$	40,093		$	42,301		$	45,372		$	46,293
Tax-equivalent adjustment on securities -
exempt from Federal tax		60			60			61			61			63
Net interest income, FTE (non-GAAP)	$	39,515		$	40,153		$	42,362		$	45,433		$	46,356
Average balance of total interest earning assets	$	4,872,449		$	4,842,279		$	4,923,582		$	5,051,710		$	4,948,397
Net interest margin (annualized net interest income divided by the
average balance of total interest earnings assets) (GAAP)		3.26	%		3.33	%		3.41	%		3.56	%		3.75	%
Net interest margin, FTE (annualized net interest income, FTE,
divided by the average balance of total
earnings assets) (non-GAAP)		3.26	%		3.34	%		3.41	%		3.57	%		3.76	%

	For the Six Months Ended:
	June 30,			June 30,
(in $000’s, unaudited)	2024			2023
Net interest income before
credit losses on loans (GAAP)	$	79,548		$	95,551
Tax-equivalent adjustment on securities - exempt from Federal tax		120			129
Net interest income, FTE (non-GAAP)	$	79,668		$	95,680
Average balance of total interest earning assets	$	4,857,364		$	4,921,850
Net interest margin (annualized net interest income divided by the
average balance of total interest earnings assets) (GAAP)		3.29	%		3.91	%
Net interest margin, FTE (annualized net interest income, FTE, divided by the
average balance of total interest earnings assets) (non-GAAP)		3.30	%		3.92	%

24

♦ The efficiency ratio is a non-GAAP financial measure, which is calculated by dividing noninterest expense by total revenue (net interest income plus noninterest income), and measures how much it costs to produce one dollar of revenue. The following tables summarize components of the efficiency ratio of the Company for the periods indicated:

	For the Quarter Ended:
	June 30,			March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2024			2024			2023			2023			2023
Noninterest expense	$	28,188		$	27,536		$	25,491		$	25,171		$	24,991
Net interest income before credit losses on loans	$	39,455		$	40,093		$	42,301		$	45,372		$	46,293
Noninterest income		2,276			2,047			1,942			2,216			2,074
Total revenue	$	41,731		$	42,140		$	44,243		$	47,588		$	48,367
Efficiency ratio (noninterest expense divided
by total revenue) (non-GAAP)		67.55	%		65.34	%		57.62	%		52.89	%		51.67	%

	For the Six Months Ended:
	June 30,			June 30,
(in $000’s, unaudited)	2024			2023
Noninterest expense	$	55,724		$	50,392
Net interest income before credit losses on loans	$	79,548		$	95,551
Noninterest income		4,323			4,840
Total revenue	$	83,871		$	100,391
Efficiency ratio (noninterest expense divided
by total revenue) (non-GAAP)		66.44	%		50.20	%

25

♦ Management considers the tangible common equity ratio as a useful measurement of the Company’s and the Bank’s equity. The following table summarizes components of the tangible common equity to tangible assets ratio of the Company at the dates indicated:

TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS	June 30,			March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2024			2024			2023			2023			2023
Capital components:
Total Equity (GAAP)	$	679,199		$	676,296		$	672,901		$	661,930		$	653,670
Less: Preferred Stock		—			—			—			—			—
Total Common Equity		679,199			676,296			672,901			661,930			653,670
Less: Goodwill		(167,631)			(167,631)			(167,631)			(167,631)			(167,631)
Less: Other Intangible Assets		(7,521)			(8,074)			(8,627)			(9,229)			(9,830)
Total Tangible Common Equity (non-GAAP)	$	504,047		$	500,591		$	496,643		$	485,070		$	476,209
Asset components:
Total Assets (GAAP)	$	5,263,024		$	5,256,074		$	5,194,095		$	5,403,307		$	5,311,837
Less: Goodwill		(167,631)			(167,631)			(167,631)			(167,631)			(167,631)
Less: Other Intangible Assets		(7,521)			(8,074)			(8,627)			(9,229)			(9,830)
Total Tangible Assets (non-GAAP)	$	5,087,872		$	5,080,369		$	5,017,837		$	5,226,447		$	5,134,376
Tangible common equity / tangible assets (non-GAAP)		9.91	%		9.85	%		9.90	%		9.28	%		9.27	%

♦ The following table summarizes components of the tangible common equity to tangible assets ratio of the Bank at the dates indicated:

TANGIBLE COMMON EQUITY TO TANGIBLE ASSETS	June 30,			March 31,			December 31,			September 30,			June 30,
(in $000’s, unaudited)	2024			2024			2023			2023			2023
Capital components:
Total Equity (GAAP)	$	697,964		$	694,543		$	690,918		$	679,644		$	670,836
Less: Preferred Stock		—			—			—			—			—
Total Common Equity		697,964			694,543			690,918			679,644			670,836
Less: Goodwill		(167,631)			(167,631)			(167,631)			(167,631)			(167,631)
Less: Other Intangible Assets		(7,521)			(8,074)			(8,627)			(9,229)			(9,830)
Total Tangible Common Equity (non-GAAP)	$	522,812		$	518,838		$	514,660		$	502,784		$	493,375
Asset components:
Total Assets (GAAP)	$	5,260,500		$	5,254,044		$	5,190,829		$	5,402,838		$	5,314,170
Less: Goodwill		(167,631)			(167,631)			(167,631)			(167,631)			(167,631)
Less: Other Intangible Assets		(7,521)			(8,074)			(8,627)			(9,229)			(9,830)
Total Tangible Assets (non-GAAP)	$	5,085,348		$	5,078,339		$	5,014,571		$	5,225,978		$	5,136,709
Tangible common equity / tangible assets (non-GAAP)		10.28	%		10.22	%		10.26	%		9.62	%		9.60	%

26

EX-99.2

Exhibit 99.2

Heritage Commerce Corp Declares Regular Quarterly Cash Dividend of $0.13 Per Share;

San Jose, CA — July 25, 2024 — Heritage Commerce Corp (Nasdaq: HTBK), the holding company for Heritage Bank of Commerce (the “Bank”), today announced that its Board of Directors had declared its regular quarterly cash dividend of $0.13 per share to holders of its common stock. The dividend will be payable on August 22, 2024, to shareholders of record at the close of the business day on August 8, 2024. Heritage Commerce Corp has paid a cash dividend each quarter since 2013.

“The Board of Directors of Heritage Commerce Corp announced a $0.13 per share quarterly cash dividend to holders of its common stock, as a result of another profitable quarter,” said Mr. Clay Jones, President and Chief Executive Officer. “We thank our loyal shareholders for their support and look forward to a successful second half of the year.”

Heritage Commerce Corp, a bank holding company established in October 1997, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose, CA with full-service branches in Danville, Fremont, Gilroy, Hollister, Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo, San Rafael, and Walnut Creek. Heritage Bank of Commerce is an SBA Preferred Lender. Bay View Funding, a subsidiary of Heritage Bank of Commerce, is based in San Jose, CA and provides business-essential working capital factoring financing to various industries throughout the United States. For more information, please visit www.heritagecommercecorp.com. The contents of our website are not incorporated into, and do not perform a part of, this release or of our filings with the Securities and Exchange Commission.

Member FDIC

For additional information, contact:

Debbie Reuter

EVP, Corporate Secretary

Direct: (408) 494-4542

Debbie.Reuter@herbank.com

1

EX-99.3

Exhibit 99.3

Heritage Commerce Corp Announces $15 Million Share Repurchase

San Jose, California — July 25, 2024 — Heritage Commerce Corp (NASDAQ: HTBK) (the "Company") the holding company of Heritage Bank of Commerce (the "Bank") today announced that its Board of Directors (the “Board”) adopted a share repurchase program (the “Repurchase Program”) under which the Company is authorized to repurchase up to $15 million of the Company’s shares of its issued and outstanding common stock.

"From time to time, we believe Heritage’s shares are undervalued and repurchases represent a value-enhancing deployment of capital,” said Clay Jones, President and Chief Executive Officer. "We are confident about the growth of our Company, and we believe that when our shares are undervalued, repurchases represent a value-enhancing deployment of capital. We believe this Repurchase Program will enhance the return on our tangible common equity. As we look at the broader landscape, and the strategic opportunities before us, we will remain financially disciplined with a clear focus on executing against our strategic plan and delivering value for our shareholders.”

Under the Repurchase Program, the Company is authorized to purchase up to $15 million of its common stock from time-to-time in open market transactions, made pursuant to Rule 10b-18 of the Securities Exchange Act of 1934, as amended. The actual timing, price, value and amount of any repurchases under the Repurchase Program will depend on various factors, including the market price of the Company’s common stock, trading volume, general market conditions and other corporate and economic considerations, including the best interests of our shareholders. The Company has entered into an agreement with Keefe, Bruyette & Woods to assist in repurchasing shares of Company common stock as part of the Repurchase Program.

The Repurchase Program may be suspended, terminated or modified at any time for any reason, including market conditions, the cost of repurchasing shares, the availability of alternative investment opportunities, liquidity, and other factors deemed appropriate. These factors may also affect the timing and amount of share repurchases. The Repurchase Program does not obligate the Company to purchase any particular number of shares. Unless otherwise suspended or terminated, the Repurchase Program expires on July 31, 2025.

Heritage Commerce Corp, a bank holding company established in October 1997, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose, CA with full-service branches in Danville, Fremont, Gilroy, Hollister, Livermore, Los Altos, Los Gatos, Morgan Hill, Oakland, Palo Alto, Pleasanton, Redwood City, San Francisco, San Jose, San Mateo, San Rafael, and Walnut Creek. Heritage Bank of Commerce is an SBA Preferred Lender. Bay View Funding, a subsidiary of Heritage Bank of Commerce, is based in San Jose, CA and provides business-essential working capital factoring financing to various industries throughout the United States. For more information, please visit www.heritagecommercecorp.com. The contents of our website are not incorporated into, and do not perform a part of, this release or of our filings with the Securities and Exchange Commission.

Forward-Looking Statement Disclaimer

Certain matters discussed in this press release constitute forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements may be deemed to include, among other things, statements relating to the Company’s future financial performance, projected cash flows of our investment securities portfolio, the performance of our loan portfolio, estimated net interest income resulting from a shift in interest rates, expectation of high credit quality issuers ability to repay, as well as statements relating to the anticipated effects on the Company’s financial condition and results of operations from expected developments or events. Any statements that reflect our belief about, confidence in, or expectations for future events, performance or condition should be considered forward-looking statements. Readers should not construe these statements as assurances of a given level of performance, nor as promises that we will take actions that we currently expect to take. All statements are subject to various risks and uncertainties, many of which are outside our control and some of which may fall outside our ability to predict or anticipate. Accordingly, our actual results may differ materially from our projected results, and we may take actions or experience events that we do not currently expect. The Bank does not undertake, and specifically disclaims, any obligation to update or revise any forward-looking statements, whether to reflect new information, future events, or otherwise, except as required by law.

Member FDIC

For additional information, contact:

Debbie Reuter

EVP, Corporate Secretary

Direct: (408) 494-4542

Debbie.Reuter@herbank.com

XML

Document and Entity Information	Jul. 25, 2024
Cover [Abstract]
Document Type	8-K
Document Period End Date	Jul. 25, 2024
Entity Registrant Name	HERITAGE COMMERCE CORP
Entity Central Index Key	0001053352
Entity File Number	000-23877
Entity Tax Identification Number	77-0469558
Entity Incorporation, State or Country Code	CA
Entity Address, Address Line One	224 Airport Parkway
Entity Address, City or Town	San Jose
Entity Address, Postal Zip Code	95110
Entity Address, State or Province	CA
City Area Code	408
Local Phone Number	947-6900
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, No Par Value
Trading Symbol	HTBK
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Amendment Flag	false