{"id":702400,"date":"2022-10-27T18:23:51","date_gmt":"2022-10-27T22:23:51","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/heritage-commerce-corp-earns-18-1-million-for-the-third-quarter-of-2022-and-45-8-million-for-the-first-nine-months-of-2022\/"},"modified":"2022-10-27T18:23:51","modified_gmt":"2022-10-27T22:23:51","slug":"heritage-commerce-corp-earns-18-1-million-for-the-third-quarter-of-2022-and-45-8-million-for-the-first-nine-months-of-2022","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/heritage-commerce-corp-earns-18-1-million-for-the-third-quarter-of-2022-and-45-8-million-for-the-first-nine-months-of-2022\/","title":{"rendered":"Heritage Commerce Corp Earns $18.1 Million for the Third Quarter of 2022, and $45.8 Million for the First Nine Months of 2022"},"content":{"rendered":"
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SAN JOSE, Calif., Oct. 27, 2022 (GLOBE NEWSWIRE) — Heritage Commerce Corp (Nasdaq: HTBK)<\/strong>, the holding company (the \u201cCompany\u201d) for Heritage Bank of Commerce (the \u201cBank\u201d), today announced third quarter 2022 net income of $18.1 million, or $0.30 per average diluted common share, compared to $13.7 million, or $0.23 per average diluted common share, for the third quarter of 2021, and $14.8 million, or $0.24 per average diluted common share, for the second quarter of 2022. For the nine months ended September 30, 2022, net income was $45.8 million, or $0.75 per average diluted common share, compared to $33.7 million, or $0.56 per average diluted common share, for the nine months ended September 30, 2021. All results are unaudited.<\/p>\n

\u201cOur outstanding operating results reflect the continued successful implementation of our growth plan.\u00a0\u00a0 We delivered record third quarter and year-to-date 2022 earnings, fueled by higher net interest income and solid loan growth. Our net interest margin improved to 3.73% for the third quarter of 2022, compared to 3.38% from the preceding quarter, driven primarily by a shift in the mix of earning assets as the Company invested its excess liquidity into higher yielding loans and investment securities. Loans, excluding Small Business Administration (\u201cSBA\u201d) Paycheck Protection Program (\u201cPPP\u201d) loans and residential mortgages, increased 10% from a year earlier, and 3% from the preceding quarter. Total deposits increased $69.6 million from the linked quarter with noninterest-bearing deposits increasing 4% from a year ago,\u201d said Clay Jones, President and Chief Executive Officer. \u201cNet income increased 22% from the preceding quarter and 32% from the third quarter a year ago. The return on average tangible equity was 16.60%, the return on average tangible assets was 1.36% and our efficiency ratio improved to 47.02%, for the third quarter of 2022.\u201d<\/p>\n

\u201cOur credit quality remains healthy as a result of our credit management, while we continue to be vigilant to the potential impact an uncertain economic future could have on our portfolio. Nonperforming assets (\u201cNPAs\u201d) declined $3.7 million at September 30, 2022 from September 30, 2021, and declined $1.7 million from June 30, 2022, with continued net recoveries throughout the first nine months of 2022,\u201d said Mr. Jones. \u201cReflecting our strong loan growth, we recorded a $1.0 million provision for credit losses on loans during the third quarter of 2022.\u201d<\/p>\n

\u201cOur noninterest income was also higher in the third quarter of 2022, compared to the preceding quarter, primarily due to the substantial increase in gain on sale of SBA loans and higher income on off-balance sheet deposits,\u201d said Mr. Jones. Third quarter 2022 noninterest expense was elevated compared to the third quarter a year ago and to the preceding quarter, due to non-cash expenses related to the retirement of the previous President and Chief Executive Officer of the Company from the vesting of shares of restricted common stock. This one-time contractual event added $784,000 to salaries and employee benefits for the third quarter of 2022, which increased 13% from the third quarter of 2021, and 5% from the second quarter of 2022.<\/p>\n

\u201cThese solid results are a direct result of our dedicated employees and their commitment and effort in supporting our clients, communities and shareholders,\u201d said Mr. Jones. \u201cOur strong liquidity continues to provide us with the opportunity for investment strategies that positively impact our net interest income.\u201d<\/p>\n

\n Third Quarter Ended September 30, 2022 <\/strong>
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\n Operating Results, Balance Sheet Review, Capital Management, and Credit Quality<\/strong>\n <\/p>\n

(as of, or for the periods ended September 30, 2022, compared to September 30, 2021, and June 30, 2022, except as noted):<\/p>\n

\n Operating Results:<\/strong>\n <\/p>\n