Q3 2022 Earnings Release
Heritage Commerce Corp Announces Q3 2022 Earnings
San Jose, CA — October 27, 2022 — Heritage Commerce Corp (Nasdaq: HTBK), the holding company for Heritage Bank of Commerce, announced a net income of $18.1 million ($0.30 per average diluted share) for Q3 2022. This compares to $13.7 million ($0.23 per average diluted share) in Q3 2021 and $14.8 million ($0.24 per share) in Q2 2022.
For the nine months ending September 30, 2022, the company reported net income of $45.8 million ($0.75 per share), up from $33.7 million ($0.56 per share) for the same period in 2021.
Performance Highlights
- Net interest margin rose to 3.73% in Q3 2022, compared to 3.38% in Q2 2022, due to higher-yielding investments in loans and securities.
- Noninterest-bearing deposits increased by 4% year-over-year.
- Total deposits grew by $69.6 million compared to Q2 2022.
- Excluding PPP loans and residential mortgages, loan growth increased by 10% from a year ago.
“Our outstanding operating results reflect the continued successful implementation of our growth plan. We delivered record third quarter and year-to-date 2022 earnings fueled by higher net interest income and solid loan growth,” said Clay Jones, President and CEO.
Credit and Expense Management
- Nonperforming assets decreased by $3.7 million year-over-year to $1.0 million as of September 30, 2022.
- A provision for credit losses of $1.0 million was recorded in Q3 2022.
- Noninterest income saw a rise due to gains from SBA loan sales and off-balance-sheet deposits.
- Noninterest expenses increased by 13% year-over-year due to contractual retirement benefits for the previous CEO.
Heritage Commerce Corp continues to attribute its strong performance to its dedicated employees, solid liquidity position, and prudent investment strategies.
For more information and detailed data, please refer to the complete report:
