Q3 2024 Earnings Release
Heritage Commerce Corp Reports Client Deposit Growth of 6% in the Third Quarter of 2024
San Jose, CA — October 24, 2024 — Heritage Commerce Corp (Nasdaq: HTBK), the holding company for Heritage Bank of Commerce, reported its third quarter 2024 results, highlighting a net income of $10.5 million, or $0.17 per average diluted common share. This represents a growth from $9.2 million, or $0.15 per share in the prior quarter, but a decline compared to $15.8 million, or $0.26 per share, in Q3 2023.
The nine months ended September 30, 2024, saw a net income of $29.9 million ($0.49 per share), down from $51.1 million ($0.83 per share) during the same period in 2023. All data presented are unaudited.
“The highlight of the third quarter of 2024 was significant deposit growth from our clients throughout our markets,” said Clay Jones, President and CEO. “Total deposit balances grew 6% at the end of the third quarter compared to the prior quarter, with noninterest-bearing demand deposits increasing by 7% over the same period.”
Operating Results and Financial Highlights
Key Financial Metrics
| Period | Return on Average Equity | Return on Average Assets |
|---|---|---|
| Q3 2024 | 6.14% | 0.78% |
| Q2 2024 | 5.50% | 0.71% |
| Q3 2023 | 9.54% | 1.16% |
Net interest income increased slightly to $39.9 million in Q3 2024 from $39.5 million in Q2 2024, while the fully tax equivalent (FTE) net interest margin contracted to 3.17% from 3.26%.
Liquidity and Available Credit
The company’s liquidity position remains robust, with $3.2 billion in total available liquidity and borrowing capacity, representing 69% of total deposits as of September 30, 2024.
Recent Developments
On October 2, 2024, the company appointed Thomas A. Sa as Chief Operating Officer, overseeing banking operations, risk management, and IT systems.
