Heritage Commerce Corp HTBK

Competitive advantage analysis · financial-services

Bank Specialized
Overall moat score
49/100
Developing

Ranked against 399 peers in Banks - Regional

About Heritage Commerce Corp

Heritage Commerce Corp operates as the bank holding company for Heritage Bank of Commerce that provides various commercial and personal banking services to residents and the business/professional community in California. Its deposit products for business banking and retail markets include interest and non-interest-bearing demand, savings, and money market accounts, as well as certificates of deposit and time deposits. The company … Full HTBK analysis →

Key strengths

  • Strong Capital Position Capital position is strong (score 0.91), exceeding regulatory minimums.

Key risks

  • Weak Deposit Franchise Deposit franchise appears weak (profitability score 0.37).

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Deposit Franchise

Developing
46
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Signals, strengths and risks for Deposit Franchise

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Signals, strengths and risks for Lending Advantage

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Signals, strengths and risks for Capital Strength

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Signals, strengths and risks for Cost Discipline

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Signals, strengths and risks for Revenue Diversification

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Signals, strengths and risks for Risk Management

Where HTBK ranks in Banks - Regional

Heritage Commerce Corp ranks #199 of 393 scored companies in Banks - Regional by moat score — the top 51%. The widest moat in the group is 1st Source Corporation (SRCE) at 86/100.

# Company Moat score Rating
195 Bank of Marin Bancorp BMRC 50/100 Developing
196 C&F Financial Corporation CFFI 50/100 Developing
197 Community West Bancshares CWBC 50/100 Developing
198 Franklin Financial Services Cor FRAF 49/100 Developing
199 Heritage Commerce Corp HTBK 49/100 Developing
200 ACNB Corporation ACNB 49/100 Developing
201 OP Bancorp OPBK 49/100 Developing
202 Eagle Bancorp Montana, Inc. EBMT 49/100 Developing
203 Enterprise Bancorp Inc EBTC 49/100 Developing

See every Banks & Lenders company ranked by moat score →

How HTBK scores on the Bank Specialized defenses

Deposit Franchise

Score 46 · 22% of the moat score

A deposit franchise is the cheapest and most valuable thing a bank can own.

Lending Advantage

Score 46 · 18% of the moat score

Lending advantage is the ability to originate loans at attractive spreads without buying that volume with looser credit standards.

Capital Strength

Score 65 · 20% of the moat score

Capital is the buffer between loan losses and insolvency, and it is what regulators judge a bank on first.

Cost Discipline

Score 45 · 16% of the moat score

Banking carries high fixed costs in branches, compliance and technology, so what it costs to run the bank relative to what the bank earns is a genuine competitive variable.

Revenue Diversification

Score 42 · 14% of the moat score

A bank earning everything from net interest income is a leveraged bet on the rate cycle.

Risk Management

Score 50 · 10% of the moat score

Risk management is the defense that only reveals itself late.

How each Bank Specialized defense is measured, in full →

Understanding HTBK's moat

What is Heritage Commerce Corp's moat score?

Heritage Commerce Corp (HTBK) scores 49 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as developing. It ranks #199 of 393 scored companies in Banks - Regional, the top 51%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 399 companies in Banks - Regional. Its strongest defense is Capital Strength (65/100) and its weakest is Revenue Diversification (42/100).

How does Heritage Commerce Corp compare with other Banks - Regional companies?

Heritage Commerce Corp ranks #199 of 393 scored companies in Banks - Regional by moat score. The widest moat in Banks - Regional is 1st Source Corporation (SRCE) at 86/100. The companies ranked closest are Franklin Financial Services Cor (FRAF) at 49 just above it and ACNB Corporation (ACNB) at 49 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Bank Specialized in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 399 companies in Banks - Regional. The defenses are then weighted to produce the overall score out of 100.

Why is Heritage Commerce Corp scored with the Bank Specialized template?

A bank does not sell a product at a margin. It funds itself, lends at a spread, and books profits that remain an estimate until the loans are actually repaid. That makes the usual margin-and-return questions misleading, so the Bank template scores what really determines a bank's durability: where its funding comes from, what it lends against, how much capital stands behind it, and whether it has been pricing risk honestly.

Which competitive defenses are measured for Heritage Commerce Corp?

The Bank Specialized template measures 6 defenses, and HTBK scores: Deposit Franchise (46), Lending Advantage (46), Capital Strength (65), Cost Discipline (45), Revenue Diversification (42), Risk Management (50). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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