Borrowing Arrangements

Federal Home Loan Bank Borrowings, Federal Reserve Bank Borrowings, and Available Lines of Credit

HBC has off-balance sheet liquidity in the form of Federal funds purchase arrangements with correspondent banks, and lines of credit from the FHLB and FRB. HBC maintains a collateralized line of credit with the FHLB of San Francisco. Under this line, HBC can borrow from the FHLB on a short-term (typically overnight) or long-term (over one year) basis. HBC can also borrow from the FRB discount window. The following table shows the collateral value of loans

and securities pledged for the lines of credit (if collateralized), total available lines of credit, the amounts outstanding, and the remaining available at the dates indicated:


	December 31, 2025
	Collateral Value		Total Available		Outstanding		Remaining Available

	(Dollars in thousands)
FHLB collateralized borrowing capacity	$	1,229,391	$	816,066	$	—	$	816,066
FRB discount window collateralized line of credit	1,497,471		1,193,854		—		1,193,854
Federal funds purchase arrangements	N/A		75,000		—		75,000

Total	$	2,726,862	$	2,084,920	$	—	$	2,084,920


	December 31, 2024
	Collateral Value		Total Available		Outstanding		Remaining Available

	(Dollars in thousands)
FHLB collateralized borrowing capacity	$	1,233,768	$	815,760	$	—	$	815,760
FRB discount window collateralized line of credit	1,755,347		1,383,149		—		1,383,149
Federal funds purchase arrangements	N/A		90,000		—		90,000
Holding company line of credit	N/A		25,000		—		25,000
Total	$	2,989,115	$	2,313,909	$	—	$	2,313,909

HBC may also utilize securities sold under repurchase agreements to manage our liquidity position. There were no securities sold under agreements to repurchase at December 31, 2025, and 2024.

Subordinated Debt

On May 11, 2022, the Company completed a private placement offering of $40,000,000 aggregate principal amount of its 5.00% fixed-to-floating rate subordinated notes due May 15, 2032 (“Sub Debt due 2032”). The Company used the net proceeds of the Sub Debt due 2032 for general corporate purposes, including the repayment on June 1, 2022 of the Company’s $40,000,000 aggregate principal amount of 5.25% fixed-to-floating rate subordinated notes due June 1, 2027. The Sub Debt due 2032, net of unamortized issuance costs of $195,000, totaled $39,805,000 at December 31, 2025, and qualifies as Tier 2 capital for the Company under the guidelines established by the Federal Reserve Bank. The debt issuance costs are amortized on a straight line basis through the maturity date of the subordinated notes.

Historical Timeline

Fiscal Year	Filed
2025	Mar 9, 2026	Showing above
2024	Mar 10, 2025

2023	Mar 11, 2024

2022	Mar 9, 2023

2021	Mar 4, 2022

2020	Mar 5, 2021

2019	Mar 11, 2020

2018	Mar 14, 2019

2017	Mar 16, 2018

2016	Mar 3, 2017

2015	Mar 7, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

HERITAGE COMMERCE CORP Debt Disclosure

Historical Timeline

About Debt Disclosures

Other Available Disclosures