{"id":899925,"date":"2025-10-23T18:40:55","date_gmt":"2025-10-23T22:40:55","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/heritage-commerce-corp-reports-third-quarter-and-first-nine-months-of-2025-financial-results\/"},"modified":"2025-10-23T18:40:55","modified_gmt":"2025-10-23T22:40:55","slug":"heritage-commerce-corp-reports-third-quarter-and-first-nine-months-of-2025-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/heritage-commerce-corp-reports-third-quarter-and-first-nine-months-of-2025-financial-results\/","title":{"rendered":"Heritage Commerce Corp Reports Third Quarter and First Nine Months of 2025 Financial Results"},"content":{"rendered":"

\nCore Business Momentum and Operating Leverage Drive Double-Digit EPS Growth in Third Quarter
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SAN JOSE, Calif., Oct. 23, 2025 (GLOBE NEWSWIRE) — Heritage Commerce Corp<\/strong>(Nasdaq: HTBK), <\/strong>(the \u201cCompany\u201d), the holding company for Heritage Bank of Commerce (the \u201cBank\u201d) today announced its financial results for the third quarter and first nine months of 2025. All data are unaudited.<\/p>\n

\n REPORTED THIRD QUARTER 2025 HIGHLIGHTS:<\/strong>\n <\/p>\n\n\n\n\n
\n Net Income<\/strong>\n <\/td>\n\n Diluted Earnings Per Share (“EPS”)<\/strong>\n <\/td>\n\n Pre-Provision Net Revenue (“PPNR”)<\/strong>\n <\/td>\n\n Fully Tax Equivalent (“FTE”) Net Interest Margin(1)<\/sup><\/strong>\n <\/td>\n\n Efficiency Ratio<\/strong>\n <\/td>\n\n Return on Average Tangible Common Equity(1)<\/sup><\/strong>\n <\/td>\n<\/tr>\n
\n $14.7 Million<\/strong>\n <\/td>\n\n $<\/strong>\n <\/td>\n\n 0.24<\/strong>\n <\/td>\n\n $21.0 Million<\/strong>\n <\/td>\n\n 3.60<\/strong>\n <\/td>\n\n %<\/strong>\n <\/td>\n\n 58.05<\/strong>\n <\/td>\n\n %<\/strong>\n <\/td>\n\n 11.14<\/strong>\n <\/td>\n\n %<\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

\n CEO COMMENTARY:<\/strong>\n <\/p>\n

\u201cWe executed well in the third quarter, generating double digit EPS growth and positive operating leverage,\u201d said Clay Jones, President and Chief Executive Officer. \u201cWe had positive trends in loan and deposit growth, an expansion in our net interest margin, disciplined expense management, and an improvement in our asset quality. Loan and deposit growth was 1% and 3%, respectively, over the linked quarter, and we continue to add clients in key markets across our footprint, while maintaining our underwriting and pricing.\u201d<\/p>\n

\u201cOur financial foundation is solid \u2014 marked by high capital reserves, strong liquidity, and sound asset quality. These fundamentals position us to continue to execute on our strategy, which is focused on increasing market share, growing our client franchise, and generating profitable growth, as we continue to support our community, colleagues, and shareholders. We are strengthening our platform to perform and position ourselves to deliver sustained, high-quality financial results for our shareholders.\u201d said Mr. Jones.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n LINKED-QUARTER BASIS<\/strong>\n <\/td>\n\n YEAR-OVER-YEAR<\/strong>\n <\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\n FINANCIAL HIGHLIGHTS:<\/strong>\n <\/td>\n<\/tr>\n
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  • Total revenue of $50.0 million, an increase of 5%, or $2.2 million<\/li>\n
  • Cost of funds decreased to 1.54% from 1.57%<\/li>\n
  • Reported net income of $14.7 million and reported EPS of $0.24, up 130% and 140%, from $6.4 million and $0.10, respectively<\/li>\n
  • Adjusted net income(1) <\/sup>of $14.7 million and adjusted EPS(1) <\/sup>of $0.24, up 13% and 14%, from $13.0 million and $0.21, respectively<\/li>\n<\/ul>\n<\/td>\n
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    \n
  • Total revenue of $50.0 million, an increase of 19%, or $7.9 million<\/li>\n
  • Cost of funds decreased to 1.54% from 1.88%<\/li>\n
  • PPNR\u00a0of $21.0 million, an increase of 44% from $14.6 million<\/li>\n
  • Net income of $14.7 million and EPS of $0.24, up 40% and 41%, respectively<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n BALANCE SHEET HIGHLIGHTS:<\/strong>\n <\/td>\n<\/tr>\n
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  • Loans held-for-investment (\u201cHFI\u201d) of $3.6 billion, up $47.3 million, or 1%<\/li>\n
  • Total deposits of $4.8 billion, up $149.2 million, or 3%<\/li>\n
  • Loan to deposit ratio of 74.99%, a decrease of 2% from 76.38%<\/li>\n
  • Total shareholders\u2019 equity of $700.0 million, up $5.3 million<\/li>\n<\/ul>\n<\/td>\n
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  • Increase in loans HFI of $171.4 million, or 5%<\/li>\n
  • Increase in total deposits of $47.0 million, or 1%<\/li>\n
  • Loan to deposit ratio of 74.99%, an increase of 4% from 72.11%<\/li>\n
  • Total shareholders\u2019 equity of $700.0 million, up $14.7 million<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n ASSET QUALITY:<\/strong>\n <\/td>\n<\/tr>\n
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  • Nonperforming assets (\u201cNPAs\u201d) to total assets of 0.07%, compared to 0.11%<\/li>\n
  • Classified assets to total assets of 0.62%, compared to 0.69%<\/li>\n<\/ul>\n<\/td>\n
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  • NPAs to total assets of 0.07%, compared to 0.13%<\/li>\n
  • Classified assets to total assets of 0.62%, compared to 0.59%<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n KEY PERFORMANCE METRICS:<\/strong>\n <\/td>\n<\/tr>\n
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  • FTE net interest margin(1) <\/sup>of 3.60%, an increase of 6 basis points from 3.54%<\/li>\n
  • Efficiency ratio of 58.05%, a decrease of 5% from adjusted efficiency ratio(1) <\/sup>of 61.01%<\/li>\n
  • Return on average assets of 1.05%, an increase of 11% over adjusted return on average assets(1)<\/sup><\/li>\n
  • Return on average tangible common equity(1) <\/sup>of 11.14%, an increase of 12% over adjusted return on average tangible common equity(1)<\/sup><\/li>\n<\/ul>\n<\/td>\n
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  • FTE net interest margin(1) <\/sup>of 3.60%, an increase of 45 basis points from 3.15%<\/li>\n
  • Efficiency ratio of 58.05%, a decrease of 11% from 65.37%<\/li>\n
  • Return on average assets of 1.05%, an increase of 35%<\/li>\n
  • Return on average tangible common equity(1) <\/sup>of 11.14%, an increase of 35%<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n
\n CAPITAL MANAGEMENT:<\/strong>\n <\/td>\n<\/tr>\n
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  • Common stock net repurchases of $2.2 million, compared to $1.9 million<\/li>\n
  • Total capital ratio of 15.4%, compared to 15.5%<\/li>\n
  • Common equity tier 1 capital ratio of 13.2%, compared to 13.3%<\/li>\n
  • Tangible common equity ratio(1) <\/sup>of 9.67%, compared to 9.85%<\/li>\n<\/ul>\n<\/td>\n
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