Heritage Commerce Corp (Nasdaq: HTBK), the holding company (“the Company”) of Heritage Bank of Commerce (“HBC”), announced today that it has fully repaid the $40 million of Series A preferred stock issued to the U.S. Treasury Department under the TARP Capital Purchase Program.
The Company’s strong capital levels, balance sheet, and profitability allowed the Company to exit TARP without raising any additional capital or debt. The Company used available cash (including a $30 million cash distribution from HBC) to fund the repurchase of the preferred stock of $40 million and payment of the final dividend of approximately $122,000.
The Company’s and HBC’s December 31, 2011 regulatory capital ratios and pro forma capital ratios, excluding the repurchased $40 million preferred stock and the $30 million cash contribution from HBC, are detailed in the tables below. The Company’s and HBC’s pro forma December 31, 2011 regulatory capital ratios all significantly exceed the well-capitalized requirements.
Follow this link to continue reading this press release