Q2 2024 Earnings Release
Heritage Commerce Corp Reports Increased Average Loans and Average Deposits
Bank of Commerce (the “Bank”), today announced that its second quarter 2024 net income was $9.2 million, or $0.15 per average
diluted common share, compared to $10.2 million, or $0.17 per average diluted common share, for the first quarter of 2024, and $16.4
million, or $0.27 per average diluted common share, for the second quarter of 2023. For the six months ended June 30, 2024, net
income was $19.4 million, or $0.32 per average diluted common share, compared to $35.3 million, or $0.58 per average diluted
common share, for the six months ended June 30, 2023. All data are unaudited.
client service goals,” said Clay Jones, President and Chief Executive Officer. “Our strong credit quality metrics further improved, as
nonperforming assets and classified assets were both down at the end of the second quarter of 2024 from the linked quarter. We
continued to strengthen our allowance for credit losses on loans during the second quarter of 2024, which was driven by prudent credit
risk management and the increase in loan balances.”
increased by $91.0 million year-over-year,” said Mr. Jones. “Our total deposits remained steady at $4.4 billion at June 30, 2024, while
average deposits increased during the second quarter of 2024 from the linked quarter.”
clients, communities and dedicated shareholders, and we look forward to continued success in the second half of the year,” Mr. Jones
said. “It is because of them that we remain well-positioned to execute on our growth objectives.”
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | 6M 2024 | 6M 2023 |
|---|---|---|---|---|---|
| Return on Average Equity | 5.50% | 6.08% | 10.12% | 5.79% | 11.06% |
| Return on Average Tangible Assets | 0.74% | 0.82% | 1.29% | 0.78% | 1.40% |
| Net Interest Margin (FTE) | 3.26% | 3.34% | 3.76% | 3.30% | 3.92% |
Loan Portfolio
Heritage Bank of Commerce reported an increase in its loan portfolio, excluding loans held-for-sale, which grew by $43.7 million in Q2 2024 compared to Q1 2024 and by $91.0 million year-over-year.
Total deposits remained steady at $4.4 billion.
Liquidity Position
The company’s total available liquidity and borrowing capacity remained robust at $3.0 billion, representing 66% of total deposits as of June 30, 2024.
About Heritage Commerce Corp
Heritage Commerce Corp is the holding company for Heritage Bank of Commerce, headquartered in San Jose, CA. It operates full-service branches across various locations in California. For more information, visit heritagecommercecorp.com.
For detailed financial statements and additional information, please download the full earnings release below:
