CRA Public File
2025 CRA Public File
BANK OF COMMERCE
CRA PUBLIC FILE
Revised 12/2024
PUBLIC CRA FILE CONTENTS
- Public section of CRA Performance Evaluation
- List of services
- Written comments / Responses to Comments for the current year and each of the prior two calendar years
- Branch listing / List of branches opened or closed during the current year and each of the prior two calendar years, including street addresses and census tracts
- HMDA Disclosure
- CRA FFIEC Disclosure Statement
- Assessment area map and geographies
PUBLIC DISCLOSURE
June 24, 2024
COMMUNITY REINVESTMENT ACT PERFORMANCE EVALUATION
Heritage Bank of Commerce
RSSD #2209553
224 AIRPORT PARKWAY
SAN JOSE, CA 95110
Federal Reserve Bank of San Francisco
101 Market Street
San Francisco, California 94105
NOTE: This document is an evaluation of this institution’s record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, consistent with the safe and sound operation of the institution. This evaluation is not, nor should it be construed as, an assessment of the financial condition of this institution. The rating assigned to this institution does not represent an analysis, conclusion, or opinion of the federal financial supervisory agency concerning the safety and soundness of this financial institution.
INSTITUTION RATING
Heritage Bank of Commerce is rated “SATISFACTORY“.
| Performance Test | Lending Test | Investment Test | Service Test |
|---|---|---|---|
| Outstanding | |||
| High Satisfactory | X | X | |
| Low Satisfactory | X | ||
| Needs to Improve | |||
| Substantial Noncompliance |
Major factors supporting the institution’s rating include:
- Adequate lending levels that were responsive to the assessment area’s credit needs.
- A high percentage of loans were originated within the bank’s assessment area.
- An excellent geographic distribution of loans, with a strong penetration in low- and moderate-income geographies.
- A poor distribution of loans to businesses of different revenue sizes.
- A relatively high level of community development activities that were responsive to the needs for affordable housing and community services to low- and moderate-income individuals.
INSTITUTION
Description of Institution
Heritage Bank of Commerce (HBC) is a state-chartered bank headquartered in San Jose, California, and has been conducting business since 1994. The bank had total assets of $5.2 billion as of December 31, 2023. HBC is a wholly owned subsidiary of Heritage Commerce Corporation, a bank holding company that was established in October 1997. The previous CRA evaluation, dated April 16, 2018, assigned HBC an overall “Satisfactory” rating using the Interagency Large Institution Examination Procedures.
HBC offers a range of deposit products and banking services to consumers and businesses. The institution’s commercial product offerings include commercial real estate loans, commercial construction loans, equipment loans, term financing, and letters of credit. HBC specializes in extending government-guaranteed loans and is a designated lender under the Small Business Administration’s Preferred Lender Program.
The bank’s presence in the greater San Francisco Bay Area has expanded to include San Mateo County through the acquisition of United American Bank in 2018, and San Francisco and Marin counties through the acquisition of Presidio Bank in 2019. HBC operates 17 full-service branches across Santa Clara, San Benito, Alameda, Contra Costa, San Francisco, San Mateo, and Marin counties.
Scope of Examination
HBC was evaluated in accordance with the Interagency Large Institution CRA Examination Procedures, which consist of the lending, investment, and service tests. The evaluation period for small business loans reviewed under the lending test was from January 1, 2018, through December 31, 2023. The evaluation period for community development loans, investments, and community development services was from April 17, 2018, through June 24, 2024.
The lending test is weighted more heavily than either the investment or service tests. The lending test evaluation is based on HBC’s small business loan products and community development loans. The investment test evaluates qualified community development investments, while the service test assesses retail banking services and community development services provided.
