Q1 2024 Earnings Release

Heritage Commerce Corp Q1 2024 Earnings Release

San Jose, CA — April 25, 2024 — Heritage Commerce Corp (Nasdaq: HTBK), (the “Company”), the holding company for Heritage Bank of Commerce (the “Bank”), today announced that its first quarter 2024 net income was $10.2 million, or $0.17 per average diluted common share, compared to $18.9 million, or $0.31 per average diluted common share, for the first quarter of 2023, and $13.3 million, or $0.22 per average diluted common share, for the fourth quarter of 2023. All data are unaudited.

“Our first quarter 2024 earnings were solid, highlighted by total client deposits increasing over $66 million from the prior quarter and the loan portfolio increasing over $74 million, year-over-year,” said Clay Jones, President and Chief Executive Officer. “First quarter earnings typically reflect increased seasonal expenses such as payroll taxes and other employee benefits, and this first quarter was no exception. While we benefit from higher yields on assets, we continue to see a modest impact on the increased cost of our deposits causing a slight compression in our net interest margin. The Bank’s credit quality remains strong, supported by sound reserves for potential credit losses.”

“Heritage Bank of Commerce was honored to be recently recognized on Forbes’ List of World’s Best Banks and ranked 25th on S&P Global Market Intelligence’s top 50 list of best-performing community banks. These prestigious recognitions underscore our commitment to excellence, sound financial management, and our dedication to serving our client community,” added Mr. Jones.

“This year we celebrate the Bank’s 30th anniversary, a milestone that speaks to the dedication of our team members, the trust of our loyal clients, and our unwavering commitment to supporting our communities,” said Mr. Jones. “With this support, we have created a vibrant franchise, and remain optimistic about the future of our Company.”

First Quarter Ended March 31, 2024

Operating Results, Current Liquidity Position, Financial Condition, Credit Quality, and Capital Management

(As of, or for the periods ended March 31, 2024, compared to March 31, 2023, and December 31, 2023, except as noted):

Operating Results:

  • Diluted earnings per share were $0.17 for the first quarter of 2024, compared to $0.31 for the first quarter of 2023, and $0.22 for the fourth quarter of 2023.

Key Ratios:

For the Quarter Ended March 31, 2024 December 31, 2023 March 31, 2023
Return on average assets 0.79% 1.00% 1.47%
Return on average tangible assets 0.82% 1.04% 1.52%
Return on average equity 6.08% 7.96% 12.03%
Return on average tangible common equity 8.24% 10.84% 16.71%

For more detailed information, you can read the complete document by downloading the PDF below:

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