Heritage Commerce Corp Named One of the Top Performing Banks of 2015 by S&P Global Market Intelligence

Heritage Commerce Corp

(Nasdaq:HTBK), the holding company (the “Company”) for Heritage Bank of Commerce, was ranked #35 out of the 100 top-performing banks of 2015 with total assets between $1B and $10B.  S&P Global Market Intelligence released its annual rankings of 2015’s 100 best-performing banks in two categories: community banks with assets between $1 billion and $10 billion and community banks with assets less than $1 billion.

“We are delighted to be named one of the best-performing banks by S&P Global Market Intelligence for 2015,” said Walter Kaczmarek, President and Chief Executive Officer.  “Since 2010, our total assets have grown by 89% to $2.4 billion at the end of 2015.  At December 31, 2015, our total loans and net income increased by 25% and 23%, respectively, compared to the prior year.  Contributing to our growth were the acquisitions of Bay View Funding, completed in November of 2014, and Focus Business Bank, completed in August of 2015.”

Performance Measures CriteriaIn this ranking, S&P Global Market Intelligence looked at commercial banks with 60 or fewer offices and a loan portfolio accounting for more than one-third of total assets. To be eligible for the ranking, a bank's loan portfolio had to consist of less than 50% credit card loans, and no more than half of its revenue could be from nontraditional banking activities. Banks also had to be well capitalized according to 2015 regulatory standards.

The community banks making the top 100 were ranked using six core financial performance metrics that focus on profitability, asset quality and growth for the 12-month period ended Dec. 31, 2015. The metrics used include return on average tangible assets before tax, net charge-offs as a percentage of average loans, adjusted Texas ratio, efficiency ratio, the net interest margin and loan growth. S&P Global Market Intelligence measured each company's standard deviation from the mean of each metric. The standard deviations were equally weighted then added together to calculate a performance score for each company. The scores were capped to help normalize the data.

Heritage Commerce Corp, a bank holding company established in February 1998, is the parent company of Heritage Bank of Commerce, established in 1994 and headquartered in San Jose with full-service branches in Danville, Fremont, Gilroy, Hollister, Los Altos, Los Gatos, Morgan Hill, Pleasanton, Sunnyvale, 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 Santa Clara and provides business‑essential working capital factoring financing to various industries throughout the United States.  For more information, please visit www.heritagecommercecorp.com.

Member FDIC

About S&P Global Market IntelligenceS&P Global Market Intelligence, formerly S&P Capital IQ and SNL Financial, is a division of McGraw Hill Financial (NYSE:MHFI). The firm is a leading provider of financial and industry data, research, news and analytics to investment professionals, government agencies, corporations, and universities worldwide. S&P Global Market Intelligence integrates news, comprehensive market and sector-specific data and analytics into a variety of tools to help track performance, generate alpha, identify investment ideas, understand competitive and industry dynamics, perform valuation and assess credit risk.

CONTACT:
Heritage Commerce Corp
Debbie Reuter, EVP, Corporate Secretary
[phone]