Margo G. Butsch - 02 May 2023 Form 4 Insider Report for HERITAGE COMMERCE CORP (HTBK)

Role: EVP/Chief Credit Officer
Signature: /s/ Debbie Reuter as Attorney in fact for Margo G. Butsch
Issuer symbol: HTBK
Transactions as of: 02 May 2023
Net transactions value: $0
Form type: 4
Filing time: 04 May 2023, 17:01:10 UTC
Previous filing: 17 May 2022
SEC: View on sec.gov

Transactions Table

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Ownership	Footnotes
holding	HTBK	Common Stock, No Par Value						56,877	02 May 2023	Direct

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Underlying Class	Amount	Exercise Price	Ownership	Footnotes
transaction	HTBK	Restricted Stock Unit	Award	$0	+10,399		$0.000000	10,399	02 May 2023	Common Stock, No Par Value	10,399	$0.000000	Direct	F1, F2
transaction	HTBK	Performance-Based Restricted Stock Unit	Award	$0	+10,399		$0.000000	10,399	02 May 2023	Common Stock, No Par Value	10,399	$0.000000	Direct	F3, F4
holding	HTBK	Standard Employee Option - NSO						3,000	02 May 2023	Common Stock, No Par Value	3,000	$10.34	Direct
holding	HTBK	Standard Employee Option - NSO						8,000	02 May 2023	Common Stock, No Par Value	8,000	$14.48	Direct

* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id	Content
F1	Each restricted stock unit represents a right to receive one share of Issuer common stock.
F2	The restricted stock units vest in three equal installments commencing May 2, 2024, the first anniversary of the holder's grant date.
F3	Each performance-based restricted stock unit, or PRSU, represents a right to receive one share of Issuer common stock.
F4	The PRSUs will vest depending upon the Issuer's Return on Average Tangible Common Equity ("ROATCE") over a three-year period ("Performance Period"), relative to companies in a peer group selected by the Issuer as of the grant date ("Peer Group"). If the Issuer's ROATCE is at the 35th percentile of the Peer Group at the end of the Performance Period then 50% of the PRSUs will vest. If the Issuer's ROATCE is at the 50th percentile at the end of the Performance Period then 100% of the PRSUs will vest. If the Issuer's ROATCE is at the 75th percentile at the end of the Performance Period then 150% of the PRSUs will vest. Vesting between performance levels will be determined by straight-line interpolation. None of the PRSUs will vest if the Issuer's ROATCE does not exceed the 35th threshold of the Peer Group.