Heritage Commerce Corp Reports Q2 2025 Financial Results

Heritage Commerce ( (HTBK) ) has released its Q2 earnings. Here is a breakdown of the information Heritage Commerce presented to its investors.

Heritage Commerce Corp, a bank holding company based in San Jose, California, operates Heritage Bank of Commerce, offering a range of banking services and specializing in SBA Preferred Lending. The company also provides working capital factoring financing through its subsidiary, Bay View Funding.

In its latest earnings report for the second quarter of 2025, Heritage Commerce Corp reported a net income of $6.4 million, or $0.10 per share, which was impacted by significant charges related to a legal settlement. Excluding these charges, the adjusted net income was $13.0 million, or $0.21 per share, showing an improvement from the previous quarter.

Key financial metrics highlighted in the report include a 4% increase in total revenue to $47.8 million compared to the previous quarter, and a 15% increase year-over-year. The company experienced a 1% increase in loans held-for-investment to $3.5 billion, while total deposits decreased by 1% to $4.6 billion due to seasonal outflows. The net interest margin improved to 3.54%, reflecting positive trends in loan growth and asset quality.

Despite a challenging environment, Heritage Commerce Corp maintains a strong balance sheet with high levels of capital and liquidity. The company is well-positioned to navigate economic volatility, with expectations of continued positive trends in loan growth, net interest margin, and expense management.

Looking ahead, Heritage Commerce Corp remains focused on maintaining its disciplined underwriting and pricing criteria while expanding its client base and enhancing its banking services. The management anticipates further growth and stability, leveraging its robust financial foundation to adapt to market conditions.