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Heritage Commerce and Heritage Bank of Commerce appoint Seth Fonti as CFO

Heritage Commerce Corp. and Heritage Bank of Commerce Announce Key Leadership Transition with Appointment of Seth Fonti as Chief Financial Officer

In a significant move underscoring its commitment to strategic growth and financial stewardship, Heritage Commerce Corp. (NASDAQ: HTBK), the holding company for Heritage Bank of Commerce, has announced the appointment of Seth Fonti as its new Executive Vice President and Chief Financial Officer. This leadership change, effective immediately, marks a pivotal transition for the San Jose, California-based financial institution, which has been navigating the evolving landscape of community banking amid economic uncertainties and regulatory shifts.

Seth Fonti brings a wealth of experience to his new role, poised to guide Heritage Commerce through its next phase of expansion and operational efficiency. With over two decades in the banking and finance sectors, Fonti has established himself as a seasoned executive capable of managing complex financial operations, risk assessment, and strategic planning. His appointment comes at a time when community banks like Heritage are increasingly focused on digital transformation, loan portfolio diversification, and maintaining robust capital positions in a competitive market.

Prior to joining Heritage Commerce, Fonti served in various high-level positions that honed his expertise in financial management and banking operations. Most notably, he was the Chief Financial Officer at California Bank of Commerce, a role he held until its acquisition by Heritage Bank of Commerce in 2021. This merger was a landmark event for Heritage, expanding its footprint in the Northern California region and enhancing its asset base. Fonti's intimate knowledge of the acquired entity positions him uniquely to integrate and optimize the combined operations, ensuring seamless continuity and value creation for shareholders.

Fonti's career trajectory is impressive and multifaceted. He began his professional journey in public accounting, where he gained foundational skills in auditing and financial reporting. Over the years, he transitioned into banking, holding progressively senior roles that involved overseeing treasury functions, capital markets activities, and regulatory compliance. His expertise extends to mergers and acquisitions, having played instrumental roles in several deals that strengthened institutional balance sheets. At California Bank of Commerce, Fonti was instrumental in driving financial strategies that supported sustainable growth, including managing interest rate risks and optimizing funding sources during volatile economic periods.

The announcement highlights Fonti's alignment with Heritage's core values of integrity, innovation, and community focus. In a statement released by the company, Robertson "Clay" Jones, President and Chief Executive Officer of Heritage Commerce Corp., expressed enthusiasm about Fonti's appointment. "Seth's deep understanding of our business, combined with his proven track record in financial leadership, makes him the ideal choice to lead our finance team," Jones said. "His experience will be invaluable as we continue to execute our strategic initiatives and deliver value to our clients, employees, and shareholders."

This transition also signals the retirement of Lawrence D. McGovern, who has served as Heritage's Chief Financial Officer since 2015. McGovern's tenure has been marked by steady leadership through various economic cycles, including the challenges posed by the COVID-19 pandemic and subsequent recovery. Under his guidance, Heritage Commerce maintained strong financial health, with consistent earnings growth and prudent risk management. McGovern played a key role in the company's capital raising efforts and in navigating regulatory environments, contributing to the bank's reputation for stability and reliability.

Heritage Commerce Corp., founded in 1994, operates as a bank holding company providing a range of commercial and personal banking services primarily in the San Francisco Bay Area. Its subsidiary, Heritage Bank of Commerce, boasts assets exceeding $5 billion and serves a diverse clientele, including small to medium-sized businesses, professionals, and high-net-worth individuals. The bank emphasizes relationship-based banking, offering products such as commercial loans, real estate financing, and wealth management services. In recent years, Heritage has pursued growth through strategic acquisitions, like the aforementioned California Bank of Commerce deal, which bolstered its market presence and diversified its revenue streams.

The appointment of Fonti is particularly timely given the current economic climate. Community banks are facing headwinds from rising interest rates, inflationary pressures, and potential slowdowns in lending activity. As CFO, Fonti will be responsible for overseeing financial planning, budgeting, and reporting, as well as ensuring compliance with evolving regulations such as those from the Federal Reserve and the Securities and Exchange Commission. His role will also involve investor relations, where he will communicate the company's financial performance and strategic direction to analysts and shareholders.

Industry observers note that leadership changes like this can signal a bank's readiness to adapt to new challenges. For Heritage, Fonti's background in merger integration could facilitate further consolidation opportunities in a fragmented banking sector. The company's stock, traded on NASDAQ under the ticker HTBK, has shown resilience, with shares reflecting investor confidence in its conservative lending practices and strong deposit base. While the immediate market reaction to the announcement was muted, long-term implications could include enhanced operational efficiencies and improved profitability metrics.

Looking ahead, Heritage Commerce is well-positioned to capitalize on opportunities in the tech-driven Bay Area economy. The region, home to Silicon Valley giants, continues to drive demand for sophisticated banking solutions, from venture capital financing to international trade services. Fonti's expertise in these areas could help Heritage deepen its penetration in high-growth sectors, such as technology startups and real estate development.

In his new position, Fonti is expected to collaborate closely with the executive team to refine the company's risk management framework, particularly in light of recent banking sector turbulence exemplified by events like the Silicon Valley Bank collapse. Heritage's proactive approach to liquidity and capital adequacy has shielded it from similar vulnerabilities, and Fonti's leadership will likely reinforce these strengths.

The board of directors at Heritage Commerce expressed unanimous support for Fonti's appointment, citing his strategic vision and operational acumen. This move aligns with broader trends in the banking industry, where institutions are prioritizing executives with digital fluency and adaptive strategies to thrive in a post-pandemic world.

As Heritage Commerce embarks on this new chapter, stakeholders can anticipate a continued emphasis on sustainable growth, customer-centric innovation, and shareholder value. Fonti's appointment not only fills a critical role but also injects fresh energy into the organization's financial leadership, setting the stage for what promises to be an exciting period of advancement.

Heritage Commerce's commitment to excellence in community banking remains unwavering. With assets under management reflecting a solid foundation, the bank is poised to navigate future uncertainties while seizing emerging opportunities. This leadership transition underscores the institution's forward-thinking approach, ensuring it remains a trusted partner for businesses and individuals in one of the nation's most dynamic economic regions.

In summary, Seth Fonti's elevation to CFO represents more than a personnel change; it embodies Heritage Commerce's strategic intent to build on its legacy while embracing the future. As the banking landscape evolves, leaders like Fonti will be crucial in steering institutions toward resilience and prosperity. (Word count: 1,028)

Read the Full Seeking Alpha Article at:
[ https://seekingalpha.com/news/4471923-heritage-commerce-and-heritage-bank-of-commerce-appoint-seth-fonti-as-cfo ]