HERITAGE COMMERCE Business Summary

Heritage Commerce Corp (HTBK) operates as a bank holding company for Heritage Bank of Commerce, generating revenue primarily through net interest income from a diverse loan portfolio and fee-based income from its factoring and banking services. The company organizes its operations into two reportable segments: Banking and Factoring. The Banking segment serves small-to-medium-sized businesses (SMBs) in the San Francisco Bay Area and surrounding California markets, offering commercial and industrial loans, real estate financing, and relationship-based deposit products. As of February 2026, the company is in the final stages of a definitive $811 million all-stock merger with CVB Financial Corp (Citizens Business Bank), a move intended to consolidate its position as a premier California business bank. HTBK competes directly with regional players such as Bank of Marin Bancorp (BMRC), Community West Bancshares (CWBC), and Hope Bancorp (HOPE), distinguishing itself through a high-touch, relationship-driven model tailored to Northern California’s professional and entrepreneurial sectors. Leadership is spearheaded by President and CEO Robertson "Clay" Jones, who brings over 30 years of experience including a previous tenure as President of Presidio Bank. The executive team was significantly bolstered in 2025 with the appointment of Seth Fonti as EVP and Chief Financial Officer, a veteran of MUFG Americas and JP Morgan with deep expertise in strategic finance and capital planning. Operations are managed by EVP and COO Thomas A. Sa, formerly the President of California BanCorp, while Sachin Vaidya serves as EVP and Chief Information Officer, overseeing the firm’s digital and technological infrastructure. The Board of Directors is chaired by Julianne Biagini-Komas, a Certified Public Accountant and former finance executive at CNEX Labs, who succeeded long-time chair Jack W. Conner in 2025. Notable institutional backing includes Castle Creek Capital, reflecting the company’s strong pedigree in the community banking investment landscape.