Heritage Commerce Reports Strong Loan and Deposit Growth

Heritage Commerce ( (HTBK) ) has released its Q4 earnings. Here is a breakdown of the information Heritage Commerce presented to its investors.

Heritage Commerce Corp, the parent company of Heritage Bank of Commerce, focuses on providing business and personal banking services, with a strong emphasis on small to mid-sized businesses through its network of branches in Northern California. The company, which also includes a factoring subsidiary, Bay View Funding, is known for its commitment to community banking and preferred SBA lending.

In its latest earnings report, Heritage Commerce Corp announced a stable net income for the fourth quarter of 2024, highlighting robust loan and deposit growth. The company’s net interest margin improved, driven by strategic adjustments in deposit rates, while credit quality remained strong with low nonperforming assets.

Key financial metrics for the quarter included a net income of $10.6 million, consistent with the previous quarter but down from $13.3 million in the same quarter last year. For the full year, net income was $40.5 million, a significant drop from $64.4 million in 2023. Despite this, the company reported a 2% quarterly and 10% annual increase in deposit balances, alongside a 4% annual increase in loan growth. The net interest margin rose to 3.34%, reflecting efficient cost management and favorable market conditions.

Heritage Commerce Corp’s management remains optimistic about its strategic position and financial health, citing solid capital ratios and a strong balance sheet. The company is poised to leverage economic improvements while maintaining a focus on community banking relationships to drive future growth and stability.