Heritage Commerce Corp Reports Fourth Quarter and Full Year 2025 Financial Results
Release Date: January 22, 2026 4:30 PM ET
Location: San Jose, California
Heritage Commerce Corp (Nasdaq: HTBK), the holding company for Heritage Bank of Commerce, announced its unaudited financial results for Q4 and full year ended December 31, 2025.
Fourth Quarter and Full Year 2025 Highlights
| Metric | Q4 2025 (Reported) | Q4 2025 (Adjusted) | FY 2025 (Reported) | FY 2025 (Adjusted) |
|---|---|---|---|---|
| Net Income | $15.1M | $17.2M | $47.8M | $56.4M |
| Diluted EPS | $0.25 | $0.28 | $0.78 | $0.91 |
| Return on Avg. Assets (ROAA) | 1.04% | 1.18% | 0.86% | 1.01% |
| Return on Avg. Tangible Common Equity (ROATCE) | 11.29% | 12.83% | 9.12% | 10.77% |
| Pre-Provision Net Revenue (PPNR) | $22.6M | $24.6M | $69.6M | $80.9M |
| FTE Net Interest Margin | 3.72% | 3.56% | ||
| Efficiency Ratio | 57.89% | 54.04% | 64.75% | 59.05% |
CEO Commentary
“The year 2025, and the fourth quarter in particular, was a consequential time for Heritage, and we are proud of the way our team worked to deliver solid growth and results, driven by steady performance across the business, sustained client momentum and strong credit quality. This quarter reflects strong execution across the organization. We delivered meaningful balance‑sheet growth, expanded operating leverage through disciplined expense management, and increased adjusted full year earnings by 39%.”
Strategic Merger Announcement
On December 17, 2025, Heritage Commerce Corp and CVB Financial Corp (Citizens Business Bank) announced a definitive merger agreement. Heritage will merge with and into Citizens in an all-stock transaction valued at approximately $811 million, or $13.00 per HTBK share.
The combination is expected to form a business bank with $22 billion in assets, over 75 offices, and a strong presence across California. The merger is expected to close in Q2 2026, subject to regulatory and shareholder approval.
Key Performance Metrics (FY 2025 vs. FY 2024)
- Total revenue: $197.5M, up 15%
- Net income: $47.8M (reported), $56.4M (adjusted)
- Diluted EPS: $0.78 (reported), $0.91 (adjusted)
- Loans held-for-investment: $3.7B, up $161.1M
- Total deposits: $4.9B, up $83.1M
- Nonperforming assets to total assets: 0.05%
- Adjusted efficiency ratio: 59.05%, improved from 65.88%
- Adjusted ROAA: 1.01%, up from 0.76%
- Adjusted ROATCE: 10.77%, up from 8.05%
About Heritage Commerce Corp
Heritage Commerce Corp, established in 1997, is the parent company of Heritage Bank of Commerce (est. 1994). Headquartered in San Jose, CA, it operates full-service branches in several cities including San Francisco, Oakland, Palo Alto, and Walnut Creek.
Heritage Bank of Commerce is an SBA Preferred Lender. Its subsidiary, Bay View Funding, provides working capital factoring services nationwide.
Contact
For investor inquiries: InvestorRelations@herbank.com
