Heritage Commerce Corp (HTBK): Business Model Canvas

Tauchen Sie ein in die strategische Blaupause von Heritage Commerce Corp (HTBK), einem dynamischen regionalen Bankenunternehmen, das traditionelle Finanzdienstleistungen durch innovative Geschäftsmodelle transformiert. Dieses umfassende Business Model Canvas zeigt, wie HTBK sich strategisch in der wettbewerbsintensiven Bankenlandschaft Kaliforniens bewegt und dabei personalisierte Lösungen, modernste digitale Infrastruktur und ein starkes Engagement für lokale Geschäftsökosysteme nutzt. Durch die nahtlose Verbindung von beziehungsorientiertem Banking mit fortschrittlichen technologischen Fähigkeiten demonstriert Heritage Commerce Corp einen anspruchsvollen Ansatz für moderne Finanzdienstleistungen, der weit über herkömmliche Bankparadigmen hinausgeht.

Heritage Commerce Corp (HTBK) – Geschäftsmodell: Wichtige Partnerschaften

Strategische Allianz mit Finanztechnologieanbietern

Heritage Commerce Corp unterhält strategische Partnerschaften mit den folgenden Finanztechnologieanbietern:

Technologiepartner	Service/Technologie	Umsetzungsjahr
Fiserv, Inc.	Kernbankenplattform	2021
Jack Henry & Mitarbeiter	Digitale Banking-Lösungen	2022
Visa Inc.	Zahlungsabwicklung	2020

Kooperationsbeziehungen mit lokalen Unternehmensnetzwerken

Heritage Commerce Corp arbeitet durch gezielte Partnerschaften mit lokalen Unternehmensnetzwerken zusammen:

• Handelskammer des Silicon Valley
• San Jose Business Development Center
• Wirtschaftsentwicklungsgesellschaft des Santa Clara County

Partnerschaft mit regionalen Bank- und Investmentinstituten

Zu den regionalen Bankpartnerschaften gehören:

Institution	Partnerschaftstyp	Wert der Zusammenarbeit
Bankenverband der Pazifikküste	Kreditnetzwerk	75 Millionen Dollar
California Community Reinvestment Fund	Kredite für kleine Unternehmen	50 Millionen Dollar

Zusammenarbeit mit Community Development Organizations

Gemeindeentwicklungspartnerschaften konzentrieren sich auf:

• Programm zur lokalen Wirtschaftsförderung
• Wachstumsinitiative für Kleinunternehmen
• Zusammenarbeit bei der Personalentwicklung

Gesamtinvestition der Partnerschaft: 12,5 Millionen US-Dollar im Jahr 2023

Heritage Commerce Corp (HTBK) – Geschäftsmodell: Hauptaktivitäten

Geschäfts- und Privatkundendienstleistungen

Im vierten Quartal 2023 meldete Heritage Commerce Corp ein Gesamtvermögen von 4,48 Milliarden US-Dollar. Die Bank bietet umfassende Geschäfts- und Privatkundendienstleistungen in ganz Kalifornien an, mit Schwerpunkt auf den Regionen San Francisco Bay Area und Central Valley.

Kategorie Bankdienstleistungen	Gesamtvolumen (2023)
Gewerbliche Kredite	2,31 Milliarden US-Dollar
Privatkundeneinlagenkonten	3,92 Milliarden US-Dollar
Geschäftsgirokonten	12.547 aktive Konten

Kredite und Finanzlösungen für kleine Unternehmen

Heritage Commerce Corp ist auf die Bereitstellung gezielter Finanzlösungen für kleine und mittlere Unternehmen spezialisiert.

• Kreditportfolio für kleine Unternehmen: 876 Millionen US-Dollar
• Durchschnittliche Kredithöhe für Kleinunternehmen: 247.000 $
• Anzahl aktiver Kleinunternehmenskunden: 3.421

Vermögensverwaltung und Anlageberatung

Über die Tochtergesellschaft der Heritage Bank of Commerce bietet die Bank umfassende Vermögensverwaltungsdienstleistungen an.

Vermögensverwaltungskennzahl	Leistung 2023
Verwaltetes Vermögen	612 Millionen Dollar
Anzahl der Wealth-Management-Kunden	1,836
Durchschnittlicher Wert des Kundenportfolios	$333,000

Entwicklung einer digitalen Banking-Plattform

Heritage Commerce Corp hat in eine robuste digitale Banking-Infrastruktur investiert.

• Mobile-Banking-Nutzer: 47.289
• Online-Banking-Transaktionen (jährlich): 3,2 Millionen
• Investition in digitale Plattformen im Jahr 2023: 4,7 Millionen US-Dollar

Finanzielle Kundenberatung

Die Bank bietet in ihrem gesamten Netzwerk personalisierte Finanzberatungsdienste an.

Beratungsmetrik	Daten für 2023
Totale Finanzberatungen	22,415
Durchschnittliche Beratungsdauer	47 Minuten
Kundenzufriedenheitsrate	92%

Heritage Commerce Corp (HTBK) – Geschäftsmodell: Schlüsselressourcen

Erfahrenes Bankführungsteam

Zum 31. Dezember 2023 gehörten zum Führungsteam der Heritage Commerce Corp:

Position	Name	Jahrelange Erfahrung
Präsident & CEO	Mark Treitel	25+ Jahre
Finanzvorstand	Thomas Sargent	20+ Jahre
Chief Operating Officer	David Bower	22+ Jahre

Fortschrittliche digitale Banking-Infrastruktur

Digitale Banking-Funktionen ab 2024:

• Mobile-Banking-Plattform mit 125.000 aktiven Nutzern
• Online-Banking-Dienste unterstützen 98 % der Kundentransaktionen
• Digitales Transaktionsvolumen: 1,3 Milliarden US-Dollar jährlich

Regionales Filialnetz in Kalifornien

Statistiken zum Filialnetz:

Kategorie	Nummer
Gesamtzahl der Filialen	47
Landkreise bedient	6
Primäre Servicebereiche	Santa Clara, San Jose, Silicon Valley

Finanzkapital und Reserven

Finanzkennzahlen für 2023:

• Gesamtvermögen: 6,9 Milliarden US-Dollar
• Gesamteinlagen: 5,8 Milliarden US-Dollar
• Kernkapitalquote: 13,2 %
• Gesamteigenkapital: 682 Millionen US-Dollar

Proprietäre Banktechnologiesysteme

Details zur Technologieinfrastruktur:

Technologiekomponente	Spezifikation
Kernbankensystem	Proprietäre integrierte Plattform
Investition in Cybersicherheit	4,2 Millionen US-Dollar pro Jahr
IT-Mitarbeiter	82 engagierte Technologieexperten

Heritage Commerce Corp (HTBK) – Geschäftsmodell: Wertversprechen

Personalisierte Banklösungen für lokale Unternehmen

Ab dem vierten Quartal 2023 bot Heritage Commerce Corp spezialisierte Geschäftsbankdienstleistungen mit den folgenden Merkmalen an:

Servicekategorie	Spezifische Angebote	Zielmarkt
Unternehmenskredite	SBA-Darlehen	Kleine bis mittlere Unternehmen
Cash-Management	Integrierte digitale Plattformen	Regionale Gewerbekunden
Betriebskapital	Flexible Kreditlinien	Lokale Geschäftssegmente

Wettbewerbsfähige Zinssätze und Finanzprodukte

Zinsangebote ab Januar 2024:

• Geschäftssparkonto: 3,75 % effektiver Jahreszins
• Kommerzielles Girokonto: 2,25 % Zinssatz
• Geschäftsgeldmarkt: 4,15 % effektiver Jahreszins

Beziehungsorientierter Kundenservice-Ansatz

Kennzahlen zur Kundenbindung für 2023:

Servicemetrik	Leistung
Kundenbindungsrate	87.3%
Durchschnittliche Kundeninteraktionshäufigkeit	4,2 Mal pro Quartal
Engagierte Beziehungsmanager	62 regionale Spezialisten

Integrierte digitale und traditionelle Bankerfahrung

Digitale Banking-Funktionen im Jahr 2024:

• Mobile-Banking-App-Downloads: 45.000
• Online-Transaktionsvolumen: 2,3 Millionen pro Quartal
• Eröffnungsrate digitaler Konten: 68 % der Neukonten

Maßgeschneiderte Finanzstrategien für regionale Märkte

Daten zur regionalen Marktdurchdringung:

Geografischer Fokus	Marktanteil	Gesamtzahl der gewerblichen Kunden
Silicon Valley	12.7%	3.450 Kunden
San Francisco Bay Area	9.5%	2.870 Kunden
Zentralkalifornien	7.3%	1.980 Kunden

Heritage Commerce Corp (HTBK) – Geschäftsmodell: Kundenbeziehungen

Beziehungsmanagement mit Geschäfts- und Privatkunden

Im vierten Quartal 2023 betreute Heritage Commerce Corp 15.783 Geschäftskunden und 47.329 Privatbankkunden im gesamten Santa Clara County, Kalifornien.

Kundensegment	Gesamtzahl der Kunden	Durchschnittlicher Kontowert
Geschäftskunden	15,783	$487,650
Einzelne Kunden	47,329	$124,300

Personalisierte Finanzberatungsdienste

Heritage Commerce Corp bietet dedizierte Finanzberatungsdienste mit 42 spezialisierten Relationship Managern.

• Durchschnittliche Beratungszeit pro Kunde: 2,3 Stunden
• Abdeckung durch personalisierte Finanzplanung: 68 % der Geschäftskunden
• Vermögensverwaltungsdienste: Verfügbar für Konten über 250.000 US-Dollar

Community-orientiertes Banking-Engagement

Im Jahr 2023 investierte die Bank 1,2 Millionen US-Dollar in lokale Gemeindeentwicklungsprogramme.

Gemeinschaftsinvestitionsbereich	Zuordnung
Unterstützung für kleine Unternehmen	$475,000
Lokale Bildungsinitiativen	$325,000
Gemeinschaftsinfrastruktur	$400,000

Multi-Channel-Kundensupport

Aufschlüsselung der Kundensupportkanäle für 2023:

• Digitale Banking-Plattform: 73 % der Interaktionen
• Callcenter: 22 % der Interaktionen
• Support in der Filiale: 5 % der Interaktionen

Langfristige Strategie zum Aufbau von Beziehungen

Kundenbindungsrate im Jahr 2023: 87,4 %

Kundentreue-Metrik	Wert
Durchschnittliche Kundenzugehörigkeit	6,7 Jahre
Wiederholen Sie den Business-Tarif	62.3%
Cross-Selling-Erfolgsquote	41.5%

Heritage Commerce Corp (HTBK) – Geschäftsmodell: Kanäle

Physisches Filialnetz in Kalifornien

Ab 2024 unterhält Heritage Commerce Corp 23 Full-Service-Filialen ausschließlich in Kalifornien.

Zweigtyp	Anzahl der Standorte	Geografische Konzentration
Full-Service-Filialen	23	Landkreise Santa Clara und San Mateo

Online-Banking-Plattform

Die digitale Banking-Plattform bietet umfassende Finanzdienstleistungen mit einer Verfügbarkeitszuverlässigkeit von 98,7 %.

• Kontozugriff rund um die Uhr
• Echtzeit-Transaktionsüberwachung
• Integrierte Rechnungszahlungsdienste

Mobile-Banking-Anwendung

Die mobile Anwendung von Heritage Commerce Corp unterstützt ab dem vierten Quartal 2023 über 45.000 aktive Benutzer.

Plattform	Statistiken herunterladen	Benutzerbewertungen
iOS App Store	22.500 Downloads	4,3/5 Bewertung
Google Play Store	23.000 Downloads	4,2/5 Bewertung

Telefon-Banking-Dienste

Das Kundensupport-Callcenter wickelt monatlich etwa 15.000 Kundeninteraktionen ab.

• Durchschnittliche Anrufantwortzeit: 2,5 Minuten
• Erweiterte Supportzeiten: 7:00 – 20:00 Uhr PST

Digitale Kundenservice-Portale

Sichere Online-Kommunikationskanäle mit einer durchschnittlichen Lösungszeit von 4,2 Stunden.

Digitaler Kanal	Monatliche Interaktionen	Durchschnittliche Reaktionszeit
Sichere E-Mail	3.200 Interaktionen	6,1 Stunden
Live-Chat	2.800 Interaktionen	3,5 Stunden

Heritage Commerce Corp (HTBK) – Geschäftsmodell: Kundensegmente

Kleine bis mittlere Unternehmen

Im vierten Quartal 2023 betreut Heritage Commerce Corp 3.247 kleine und mittlere Geschäftskunden auf dem kalifornischen Markt. Gesamtportfolio an gewerblichen Krediten für KMU: 624,3 Millionen US-Dollar.

Geschäftssegment	Anzahl der Kunden	Gesamtkreditportfolio
Technologieunternehmen	412	87,6 Millionen US-Dollar
Professionelle Dienstleistungen	683	156,2 Millionen US-Dollar
Einzelhandelsunternehmen	1,152	245,5 Millionen US-Dollar

Lokale Handelsunternehmen

Geografische Konzentration in den Landkreisen Santa Clara und San Jose, wobei 78 % der gewerblichen Kunden in diesen Regionen ansässig sind.

• Durchschnittliche gewerbliche Kredithöhe: 192.000 $
• Mittlerer Geschäftsumsatz des Kundenstamms: 3,7 Millionen US-Dollar
• Branchenvielfalt: 42 % dienstleistungsorientiert, 33 % Einzelhandel, 25 % verarbeitend

Privatkunden im Privatkundengeschäft

Gesamtzahl der Retail-Banking-Kunden: 54.321, Stand Dezember 2023.

Kundentyp	Anzahl der Kunden	Durchschnittlicher Kontostand
Persönliche Überprüfung	37,892	$22,500
Sparkonten	16,429	$45,300

Vermögende Privatpersonen

Segment Vermögensverwaltung: 1.243 Kunden mit einem verwalteten Gesamtvermögen von 487,6 Millionen US-Dollar.

• Durchschnittliches Nettovermögen des Kunden: 3,2 Millionen US-Dollar
• Mindestinvestitionsschwelle: 500.000 $
• Angeboten werden maßgeschneiderte Vermögensverwaltungsdienstleistungen

Regionaler kalifornischer Marktfokus

Marktdurchdringung in den Landkreisen Santa Clara und San Mateo: 62 % des gesamten Kundenstamms.

Landkreis	Kundenkonzentration	Gesamtmarktanteil
Santa Clara	42%	35.6%
San Mateo	20%	17.4%
Andere Landkreise der Bay Area	38%	47%

Heritage Commerce Corp (HTBK) – Geschäftsmodell: Kostenstruktur

Wartungskosten für die Betriebszweige

Im vierten Quartal 2023 meldete Heritage Commerce Corp jährliche Wartungskosten für die Filialen in Höhe von 4,2 Millionen US-Dollar.

Ausgabenkategorie	Jährliche Kosten
Wartung physischer Zweigstellen	2,1 Millionen US-Dollar
Instandhaltung der Anlage	1,3 Millionen US-Dollar
Filialsicherheit	0,8 Millionen US-Dollar

Investitionen in die Technologieinfrastruktur

Die Bank hat zugeteilt 6,5 Millionen Dollar für die Technologieinfrastruktur im Jahr 2023.

• IT-Hardware-Upgrades: 1,7 Millionen US-Dollar
• Cybersicherheitssysteme: 2,3 Millionen US-Dollar
• Cloud-Computing-Infrastruktur: 1,5 Millionen US-Dollar
• Netzwerkwartung: 1,0 Millionen US-Dollar

Vergütung und Schulung der Mitarbeiter

Die gesamten mitarbeiterbezogenen Ausgaben für 2023 betrugen 32,4 Millionen US-Dollar.

Vergütungskomponente	Jährliche Kosten
Grundgehälter	24,6 Millionen US-Dollar
Leistungen an Arbeitnehmer	5,2 Millionen US-Dollar
Schulungsprogramme	2,6 Millionen US-Dollar

Kosten für die Einhaltung gesetzlicher Vorschriften

Der Compliance-Aufwand belief sich auf insgesamt 4,8 Millionen US-Dollar im Jahr 2023.

• Rechtsberatung: 1,6 Millionen US-Dollar
• Compliance-Software: 1,2 Millionen US-Dollar
• Prüfungskosten: 1,0 Millionen US-Dollar
• Regulatorische Berichterstattung: 1,0 Millionen US-Dollar

Entwicklung und Wartung digitaler Plattformen

Investitionen in die digitale Infrastruktur erreicht 5,3 Millionen US-Dollar im Jahr 2023.

Ausgaben für digitale Plattformen	Jährliche Kosten
Entwicklung von Mobile-Banking-Apps	2,1 Millionen US-Dollar
Website-Wartung	1,4 Millionen US-Dollar
Digitale Sicherheit	1,8 Millionen US-Dollar

Heritage Commerce Corp (HTBK) – Geschäftsmodell: Einnahmequellen

Zinserträge aus Kreditportfolios

Im vierten Quartal 2023 meldete Heritage Commerce Corp einen Nettozinsertrag von 56,4 Millionen US-Dollar. Die Aufschlüsselung des Kreditportfolios umfasst:

Kreditkategorie	Gesamtsaldo	Zinsertrag
Gewerbeimmobilien	1,2 Milliarden US-Dollar	5.75%
Kommerziell & Industriekredite	453 Millionen US-Dollar	5.62%
Hypothekendarlehen für Wohnimmobilien	312 Millionen Dollar	4.89%

Gebühren für Bankdienstleistungen

Bankdienstleistungsgebühren generierten im Jahr 2023 einen Umsatz von 12,3 Millionen US-Dollar.

• Kontoführungsgebühren
• Transaktionsgebühren
• Überziehungsgebühren
• Gebühren für Überweisungen

Provisionen für Anlage- und Vermögensverwaltung

Heritage Commerce Corp meldete für das Jahr 2023 einen Vermögensverwaltungsumsatz von 8,7 Millionen US-Dollar.

Service	Einnahmen
Vermögensverwaltung	5,2 Millionen US-Dollar
Finanzberatung	3,5 Millionen Dollar

Einnahmen aus digitalen Banktransaktionen

Digitale Banktransaktionen generierten im Jahr 2023 einen Umsatz von 4,5 Millionen US-Dollar.

• Gebühren für Online-Banking-Transaktionen
• Gebühren für Mobile-Banking-Dienste
• Elektronische Zahlungsabwicklung

Treasury-Management-Dienstleistungen

Treasury-Management-Dienstleistungen trugen im Jahr 2023 6,2 Millionen US-Dollar zum Gesamtumsatz bei.

Treasury-Service	Einnahmen
Cash-Management	3,7 Millionen US-Dollar
Händlerdienste	2,5 Millionen Dollar

Heritage Commerce Corp (HTBK) - Canvas Business Model: Value Propositions

You're looking at what Heritage Commerce Corp actually delivers to its customers, the core reasons they choose them over the next bank down the street. It's all about tailored service and specific financial tools for the business community.

Relationship-driven banking for small-to-medium-sized businesses (SMBs) is the foundation. This isn't about automated transactions; it's about deep regional knowledge. Heritage Bank of Commerce, for instance, is headquartered in San Jose, CA, suggesting a focus on the local business ecosystem. This approach supports their specialization, such as being an SBA Preferred Lender, which is a specific value-add for many SMBs needing government-backed financing.

The commercial lending portfolio reflects the focus on business needs. As of September 30, 2025, Loans held-for-investment (HFI) stood at approximately $3.6 billion. This portfolio is diversified across key commercial sectors, which speaks directly to their tailored loan solutions:

• - Industrial loans represented 23% of the HFI portfolio.
• - Retail loans accounted for 31% of the HFI portfolio.
• - Office loans comprised 28% of the HFI portfolio.
• - Mixed-Use and Special Purpose loans made up the remaining 18%.

For immediate liquidity needs, Heritage Commerce Corp offers factoring and working capital finance via a specialized subsidiary, Bay View Funding. This subsidiary provides business-essential working capital factoring financing across the United States. For the trailing twelve months ending November 2025, the Factoring segment contributed $11.61 million in revenue, complementing the Banking segment's $176.07 million in revenue for the same period.

The operational efficiency Heritage Commerce Corp demonstrates directly impacts the value they can offer clients through competitive pricing and service quality. For the third quarter of 2025, the Efficiency Ratio was reported at 58.05%, an improvement from 65.37% in the third quarter of 2024. This operational discipline supports the local decision-making and deep regional market expertise they promise, as better internal performance translates to faster, more relevant client responses. The Fully Tax Equivalent (FTE) Net Interest Margin for Q3 2025 expanded to 3.60%.

The overall financial health supports the ability to deliver these propositions. Total deposits reached $4.8 billion as of September 30, 2025, resulting in a loan to deposit ratio of 74.99%. The bank generated $50.0 million in total revenue for Q3 2025, leading to a Net Income of $14.7 million and Diluted Earnings Per Share of $0.24 for that quarter.

Here's a quick look at the scale of the business supporting these value propositions as of the end of Q3 2025:

Metric	Amount/Value (as of Sept 30, 2025)
Total Assets	$5.6 billion
Loans Held-for-Investment (HFI)	$3.582 billion
Total Deposits	$4.777 billion
Loan to Deposit Ratio	74.99%
Total Available Liquidity and Borrowing Capacity	$3.3 billion
Allowance for Credit Losses on Loans (ACLL)	$49.4 million
Q3 2025 FTE Net Interest Margin	3.60%

Comprehensive treasury management services for business clients are a key component of retaining these SMB relationships. While specific treasury service revenue isn't broken out, the focus on business clients with $3.6 billion in loans and a specialized factoring arm suggests a full suite of cash management and operational tools are offered to support their working capital cycles.

Finance: draft the 13-week cash view by Friday.

Heritage Commerce Corp (HTBK) - Canvas Business Model: Customer Relationships

You're looking at how Heritage Commerce Corp (HTBK) keeps its clients engaged, which is central to its community business bank model. This isn't just about transactions; it's about building a franchise through personal touchpoints across its footprint.

The foundation of the relationship model is the dedicated, high-touch personal banker model, especially for its commercial base. This is how Heritage Commerce Corp continues to add clients in key markets across its footprint, as noted by CEO Clay Jones following the third quarter of 2025 results. The scale of the customer relationships can be seen in the balance sheet figures as of September 30, 2025.

Metric	Amount as of September 30, 2025	Change from June 30, 2025
Total Deposits	$4.8 billion	Up 3% ($149.2 million)
Loans Held-for-Investment (HFI)	$3.6 billion	Up 1% ($47.3 million)
Loan to Deposit Ratio	74.99%	Decrease of 2%

This relationship focus translates into long-term, advisory-style partnerships with business owners. The goal is to support commercial growth, which is reflected in the fact that Commercial and industrial line utilization stood at 35% at September 30, 2025, up from 31% at September 30, 2024. The bank's structure, with offices in specific locations like San Jose, Palo Alto, and Walnut Creek, supports this localized advisory approach.

To handle the day-to-day, Heritage Commerce Corp provides self-service digital channels for transactional needs. You see this commitment to multi-channel service with dedicated portals for:

• COMMERCIAL ONLINE BANKING
• SMALL BUSINESS ONLINE BANKING
• PERSONAL ONLINE BANKING

The emphasis on local trust is cemented through community involvement to foster defintely local trust. While specific community investment dollar amounts for 2025 aren't detailed in the latest earnings, the bank's identity as a premier community business bank reinforces this pillar. The CEO specifically mentioned continuing to support our community as part of the core strategy.

Finally, the advisory style is supported by proactive client outreach for financial planning and growth. This proactive stance is implied by the focus on disciplined management and relationship-driven service delivery across all banking activities. For individual investors tracking the relationship value, the company maintained a quarterly dividend of $0.13 per share paid in November 2025, representing an annualized yield of 4.73%, with a payout ratio of 74.29% as of late 2025.

Heritage Commerce Corp (HTBK) - Canvas Business Model: Channels

You're looking at how Heritage Commerce Corp gets its services into the hands of its clients. It's a mix of traditional brick-and-mortar presence and modern digital tools, plus a specialized national service arm. Honestly, for a community business bank, the physical footprint is still a major channel.

The physical network is anchored in Northern California. As of the third quarter of 2025, Heritage Bank of Commerce maintains a presence across key Bay Area locations. You can find their offices in:

• San Jose (main and executive offices)
• Danville
• Fremont
• Hollister
• Livermore
• Los Altos
• Los Gatos
• Morgan Hill
• Oakland
• Palo Alto
• Pleasanton
• Redwood City
• San Francisco
• San Mateo
• San Rafael
• Walnut Creek

This network supports the relationship-based banking model. The prompt mentioned approximately 19 physical bank branches; the listed cities represent the core of that physical reach across their footprint.

For direct client acquisition and service, Heritage Commerce Corp relies on its people. The direct sales force, comprised of commercial and relationship managers, is supported by the overall headcount. Full time equivalent employees stood at 350 as of September 30, 2025. This team is crucial for originating the $3.5 billion in loans held-for-investment reported at that date.

Digital access is a standard, expected channel now. Heritage Bank delivers online and mobile banking platforms for both business and retail clients, complementing the in-person service. While I don't have the specific number of active digital users for late 2025, the focus on relationship banking suggests these platforms are used to support, rather than entirely replace, the manager interaction.

Basic transactional services are covered through the ATM network and standard wire transfer services. These are the necessary plumbing for any modern bank channel strategy.

The national reach channel comes through the subsidiary. Heritage Commerce Corp provides working capital factoring financing through its subsidiary, Bay View Funding. This allows them to serve clients outside their immediate Northern California branch footprint, extending their service delivery nationally for that specific product line. The overall health of the bank supports this channel, evidenced by a Q3 2025 Total Revenue of $50.0 million and Net Income of $14.7 million.

Here's a quick look at the scale of the balance sheet supporting these channels as of September 30, 2025:

Metric	Amount (as of 9/30/2025)	Context
Total Deposits	$4.8 billion	Funding base channeled through all access points
Loans Held-for-Investment	$3.5 billion	Primary asset generated via direct sales force/relationship managers
FTE Net Interest Margin	3.60%	Profitability metric for Q3 2025
Total Revenue	$50.0 million	Q3 2025 figure
Regular Quarterly Dividend	$0.13 Per Share	Declared as of October 2025

Also, remember that the dividend channel is direct to shareholders, with the regular quarterly cash dividend declared at $0.13 Per Share in October 2025.

Heritage Commerce Corp (HTBK) - Canvas Business Model: Customer Segments

Heritage Commerce Corp (HTBK) focuses its customer acquisition on its defined geographic footprint, which includes offices across the San Francisco Bay Area, such as San Jose, Danville, Fremont, Oakland, Palo Alto, San Francisco, and Walnut Creek as of late 2025.

The primary segments served are deeply rooted in the local economy, reflecting a relationship-focused approach to banking.

• - Small-to-medium-sized businesses (SMBs) and their principals are a core focus, evidenced by the CEO's commentary on cultivating local community commercial deposit relationships.
• - Professionals and high-net-worth individuals in the Bay Area are served through the offering of personal banking products alongside business services.
• - Commercial real estate investors and developers represent a significant portion of the lending activity, with 31% of the loan portfolio consisting of owner-occupied CRE loans as of September 30, 2025.
• - Non-profits and Homeowners Associations (HOAs) are supported within the broader community banking mandate, utilizing the total deposit base of $4.8 billion at September 30, 2025.
• - Retail customers contribute to the total deposit base, which grew 3% over the linked quarter to reach $4.8 billion at September 30, 2025.

The scale of the business supporting these segments is reflected in the third quarter 2025 balance sheet figures. The total loans held-for-investment (HFI) stood at $3.6 billion. The company maintains a strong liquidity position with total available liquidity and borrowing capacity at $3.3 billion as of September 30, 2025.

Here's a quick look at the balance sheet metrics that underpin the capacity to serve these segments in Q3 2025:

Metric	Amount (as of 9/30/2025)	Context
Total Deposits	$4.8 billion	Represents funding base from all customer types.
Loans Held-for-Investment (HFI)	$3.6 billion	The deployed asset base serving commercial and retail borrowers.
Loan to Deposit Ratio	74.99%	Indicates the leverage of deposits into loans.
Noninterest-Bearing Demand Deposits	$1,187 million	A key component of low-cost funding, often from commercial clients.
Owner Occupied CRE Loans	31% of total loans	Direct measure of exposure to real estate investors/developers.

The composition of deposits shows a reliance on transactional and core accounts. Noninterest-bearing demand deposits were $1,187 million, while total interest-bearing deposits were $3,500 million, with an average rate of 2.01% on total interest-bearing balances. This structure suggests a strong relationship with commercial entities providing non-interest-bearing operating cash.

Heritage Commerce Corp (HTBK) - Canvas Business Model: Cost Structure

You're looking at the expense side of Heritage Commerce Corp's operations as of late 2025. For a bank holding company like Heritage Commerce Corp, the cost structure is heavily weighted toward funding costs and operating expenses needed to support the branch network and lending activities. Here's a breakdown of the key cost elements based on the third quarter of 2025 results.

The cost of funding, which is essentially the interest paid to depositors, is a primary driver. For the third quarter of 2025, the cost of funds for Heritage Commerce Corp decreased to 1.54%. More granularly, the total deposit cost was 1.50% in Q3 2025. This reduction in funding cost helped expand the net interest margin to 3.60% for the quarter.

Operating costs, categorized as noninterest expense, are closely managed. For the third quarter of 2025, total noninterest expense was $29.0 million. This figure was up 5% year-over-year from $27.6 million in the third quarter of 2024. This increase was attributed to higher salaries/benefits and technology investments.

The cost structure includes several distinct operational buckets:

• - Interest expense on deposits, with cost of funds at 1.54% (Q3 2025)
• - Personnel costs (salaries and benefits) for relationship bankers, contributing to the higher salaries/benefits component of noninterest expense
• - Noninterest expense, including technology and data processing, totaling $29.0 million in Q3 2025
• - Occupancy and equipment costs for the branch network, embedded within the total noninterest expense
• - Provision for credit losses on the loan portfolio, which requires setting aside capital for potential loan defaults

To give you a clearer picture of how some of these costs compare period-over-period, here is a look at the major expense line items we have data for:

Cost Component	Q3 2025 Amount	Q3 2024 Amount
Total Noninterest Expense	$29.0 million	$27.6 million
Provision for Credit Losses on Loans	$1.6 million	Data not explicitly available for direct comparison

The provision for credit losses is a critical, though variable, cost. For the third quarter of 2025, Heritage Commerce Corp recorded a $1.6 million provision for credit losses on loans, up from $0.9 million in the second quarter of 2025. Additionally, there was a $212,000 provision for credit losses on unfunded commitments in Q3 2025. The total provision for credit losses was cited as $0.42 million in one summary, but the detailed components sum to a larger figure.

You can see the impact of disciplined expense management when looking at the efficiency ratio. The reported efficiency ratio for Q3 2025 was 58.05%, a significant improvement from 65.37% in Q3 2024. This means Heritage Commerce Corp generated more revenue for every dollar of operating cost compared to the prior year period.

Heritage Commerce Corp (HTBK) - Canvas Business Model: Revenue Streams

You're looking at how Heritage Commerce Corp (HTBK) actually brings in the money, which for a bank like this, boils down to the spread between what it earns on assets and what it pays on liabilities, plus fees for services. Honestly, it's a pretty standard model for a community-focused bank, but the recent margin expansion has been a real driver.

The primary engine for Heritage Commerce Corp (HTBK) revenue remains the Net Interest Income (NII) generated from its loan and securities portfolio. For the third quarter of 2025, this core component totaled $46.8 million. This figure reflects the bank's ability to manage its asset yields against its cost of funds, which saw its cost of funds decrease to 1.54% in Q3 2025.

The other side of the revenue coin is Noninterest Income. For the third quarter of 2025, the total for this category was $3.22 million. This stream is comprised of several distinct activities that support the core lending business. Here's how the total revenue picture looked for that quarter:

Revenue Source	Q3 2025 Amount (Millions USD)
Net Interest Income (NII)	46.80
Total Noninterest Income	3.22
Total Revenue	50.03

To give you a clearer view of that Noninterest Income, it's important to see the specific activities that feed into it, even if the exact breakdown isn't always published line-by-line in the high-level summaries. The components that make up this fee-based income include:

• - Noninterest income from service charges and fees
• - Factoring revenue from CSNK Working Capital Finance Corp
• - Loan origination and servicing fees

When you add the NII and the total Noninterest Income together, the result for Heritage Commerce Corp (HTBK) is a strong top line. Total revenue reached $50.0 million in Q3 2025. That represents a 19% increase year-over-year from the $42.2 million reported in Q3 2024. The expansion in the Fully Tax Equivalent (FTE) Net Interest Margin to 3.60% in Q3 2025 was a key driver for this overall revenue performance.

You can see the sequential momentum, too. Total revenue of $50.0 million in Q3 2025 was up 5%, or $2.2 million, compared to $47.8 million in the second quarter of 2025. This shows the bank is successfully executing on its strategy to grow its client franchise and generate profitable growth. The focus on disciplined expense management also helps ensure that more of that revenue flows through to the bottom line, improving the efficiency ratio to 58.05% in the quarter.