XML 55 R42.htm IDEA: XBRL DOCUMENT v3.20.4

Business Combinations (Tables)

12 Months Ended

Dec. 31, 2020

Business Acquisition [Line Items]

Summary of consideration paid

​

​	​	​	​
​	​	(Dollars in thousands)
Issuance of 15,684,064 shares of common stock	​	​	​
to Presidio shareholders and holders of restricted stock	​	​	​
(stock price = $11.36 on October 11, 2019)	​	$	178,171
Consideration for Presidio stock options exchanged for	​	​	​
Heritage Commerce Corp stock options	​	​	7,426
Cash paid for fractional shares	​	​	1
Total consideration	​	$	185,598

Schedule of unaudited pro forma combined consolidated financial statements and related adjustments

​

​	​	​	​	​	​	​
​	​	For the Year Ended
​	​	December 31, 2019		​	December 31, 2018
(Unaudited)	​	(Dollars in thousands, except per share amounts)
Net interest income		$	163,555	​	$	160,044
Provision for loan losses	​	​	870	​	​	7,694
Noninterest income	​	​	11,291	​	​	10,795
Noninterest expense	​	​	92,708	​	​	97,563
Income before income taxes	​	​	81,268	​	​	65,582
Income tax expense	​	​	23,730	​	​	17,549
Net income	​	$	57,538	​	$	48,033
​	​	​	​	​	​	​
Net income per share - basic	​	$	0.98	​	$	0.84
Net income per share - diluted	​	$	0.96	​	$	0.83

Summary of pre-tax merger-related costs

​

​	​	​	​	​	​	​	​	​	​
​	​	​	​	​	​	​	​	​	​
​	​	For the Year Ended
​		December 31,		​	December 31,		​	December 31,
​	​	2020		​	2019		​	2018
​	​	(Dollars in thousands)
Salaries and employee benefits	​	$	356	​	$	6,580	​	$	3,569
Other	​	​	2,245	​	​	4,500	​	​	5,598
Total merger-related costs	​	$	2,601	​	$	11,080	​	$	9,167

Presidio bank

Business Acquisition [Line Items]

Schedule of recognized identified assets acquired and liabilities assumed

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	As		​	​	​	​	​	​	As
​	​	Recorded		​	Fair		​	​	​	Recorded
​	​	by		​	Value		​	​	​	at
​	​	Presidio		​	Adjustments		​	​	​	Acquisition
​	​	(Dollars in thousands)
​	​	​	​	​	​	​	​	​	​	​	​
Assets acquired:	​	​	​	​	​	​	​	​	​	​	​
Cash and cash equivalents	​	$	117,989	​	$	(1)	​	(a)	​	$	117,988
Securities available-for-sale	​	​	44,647	​	​	422	​	(b)	​	​	45,069
Securities held-to-maturity	​	​	463	​	​	—	​	​	​	​	463
Loans	​	​	698,493	​	​	(12,529)	​	(c)	​	​	685,964
Allowance for loan losses	​	​	(7,463)	​	​	7,463	​	(d)	​	​	—
Premises and equipment, net	​	​	1,756	​	​	—	​	​	​	​	1,756
Other intangible assets	​	​	—	​	​	11,147	​	(e)	​	​	11,147
Other assets, net	​	​	43,539	​	​	(1,378)	​	(f)	​	​	42,161
Total assets acquired	​	$	899,424	​	$	5,124	​	​	​	​	904,548
​	​	​	​	​	​	​	​	​	​	​	​
Liabilities assumed:	​	​	​	​	​	​	​	​	​	​	​
Deposits	​	$	774,260	​	$	(1)	​	(g)	​	​	774,259
Subordinated Debt	​	​	10,000	​	​	—	​	(h)	​	​	10,000
Other borrowings	​	​	442	​	​	—	​	​	​	​	442
Other liabilities	​	​	17,916	​	​	211	​	(i)	​	​	18,127
Total liabilities assumed	​	$	802,618	​	$	210	​	​	​	​	802,828
Net assets acquired	​	​	​	​	​	​	​	​	​	​	101,720
Purchase price	​	​	​	​	​	​	​	​	​	​	185,598
Goodwill recorded in the merger	​	​	​	​	​	​	​	​	​	$	83,878

​

Explanation of certain fair value related adjustments for the Presidio merger:

(a) Represents cash paid for fractional shares in the transaction.

(b) Represents the fair value adjustment on investment securities available-for-sale.

(c) Represents the fair value adjustment to the net book value of loans includes an interest rate mark and credit mark adjustment.

(d) Represents the elimination of Presidio’s allowance for loan losses.

(e) Represents intangible assets recorded to reflect the fair value of core deposits and an above market lease. The core deposit asset was recorded as an identifiable intangible asset and is amortized on an accelerated basis over the estimated average life of the deposit base.  The above market lease liability will be accreted

on the straight line method over 60 months.

(f) Represents an adjustment to net deferred tax assets resulting from the fair value adjustments related to the acquired assets, liabilities assumed and identifiable intangible assets recorded.

(g) Represents the fair value adjustment on time deposits, which was amortized as interest expense.

(h) The Company acquired $10,000,000 of subordinated debt from the Presidio transaction.  The Presidio subordinated debt was redeemed on December 19, 2019.

(i) Represents adjustments to accrued accounts payable.

​

X

- Definition

Tabular disclosure of summary of consideration paid.

+ References

No definition available.

+ Details

Name:	htbk_ScheduleOfAllocationOfConsiderationPaidTableTextBlock
Namespace Prefix:	htbk_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of a pre-tax merger-related costs.

+ References

No definition available.

+ Details

Name:	htbk_ScheduleOfPreTaxMergerRelatedCostsTableTextBlock
Namespace Prefix:	htbk_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

No definition available.

+ Details

Name:	us-gaap_BusinessAcquisitionLineItems
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of pro forma results of operations for a material business acquisition or series of individually immaterial business acquisitions that are material in the aggregate.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (h)(2)
-URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (h)(3)
-URI http://asc.fasb.org/extlink&oid=79982066&loc=d3e1392-128463

+ Details

Name:	us-gaap_BusinessAcquisitionProFormaInformationTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=121647850&loc=d3e4845-128472

+ Details

Name:	us-gaap_ScheduleOfRecognizedIdentifiedAssetsAcquiredAndLiabilitiesAssumedTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Details

Name:	us-gaap_BusinessAcquisitionAxis=htbk_PresidioBankMember
Namespace Prefix:
Data Type:	na
Balance Type:
Period Type: