Heritage merce p(HTBK) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2025 was $14.7 million, or $0.24 per diluted share, representing a 130% increase from $6.4 million and a 140% increase from $0.10 in Q2 2025[2][5] - Total revenue for Q3 2025 was $50.0 million, a 5% increase from $47.8 million in Q2 2025 and a 19% increase from $42.2 million in Q3 2024[4][8] - Noninterest income for Q3 2025 increased by 8% to $3.2 million compared to $3.0 million in Q2 2025, and by 14% from $2.8 million in Q3 2024[12] - Net income for Q3 2025 reached $14,698,000, a 130% increase from Q2 2025 and a 40% increase from Q3 2024[54] - Basic earnings per share for Q3 2025 was $0.24, a 140% increase from Q2 2025 and a 41% increase from Q3 2024[54] - Total revenue for the nine months ended September 30, 2025, was $143,843,000, a 14% increase compared to the same period in 2024[54] - Reported net income (GAAP) for Q3 2025 was $14,698,000, up from $10,507,000 in Q3 2024, representing a 39.5% increase[81] - Adjusted net income (non-GAAP) for Q3 2025 was $14,698,000, compared to $10,507,000 in Q3 2024, reflecting a 39.5% year-over-year growth[81] Asset and Deposit Growth - Total assets increased by 3% to $5.6 billion at September 30, 2025, compared to $5.5 billion at June 30, 2025, driven by an increase in deposits and loans[25] - Total deposits rose by $149.2 million, or 3%, to $4.8 billion at September 30, 2025, compared to $4.6 billion at June 30, 2025[33] - Total assets as of September 30, 2025, were $5,623,720,000, compared to $5,467,237,000 in the previous quarter[58] - Total deposits increased to $4,687,294,000, with an average interest rate of 1.50%, compared to $4,618,007,000 and 1.54% in the previous quarter[67] - Total deposits reached $4.674 billion as of September 30, 2025, compared to $4.427 billion as of September 30, 2024, representing an increase of 5.6%[75] Loan and Credit Quality - Loans held-for-investment increased by $47.3 million, or 1%, to $3.6 billion in Q3 2025, while total deposits rose by $149.2 million, or 3%, to $4.8 billion[4][3] - The provision for credit losses on loans was $416,000 in Q3 2025, down from $516,000 in Q2 2025 and up from $153,000 in Q3 2024[17] - The allowance for credit losses on loans was $49.4 million, or 1.38% of total loans, at September 30, 2025, consistent with the previous quarter[38] - Nonperforming loans decreased by 41% year-over-year to $3,662,000 from $6,178,000[63] - The allowance for credit losses on loans to total loans ratio remained stable at 1.38%[64] Efficiency and Profitability Metrics - The efficiency ratio improved to 58.05%, a decrease of 5% from 61.01% in Q2 2025 and an 11% decrease from 65.37% in Q3 2024[4] - The annualized return on average tangible common equity was 11.14% for Q3 2025, an increase of 12% from the previous quarter[6][4] - The annualized return on average equity improved to 8.37%, a 127% increase from Q2 2025 and a 36% increase from Q3 2024[54] - The reported efficiency ratio (noninterest expense divided by total revenue) for the nine months ended September 30, 2025, was 67.31%, compared to 66.08% in 2024[85] - The adjusted efficiency ratio for the nine months ended September 30, 2025, was 60.92%, compared to 66.08% in 2024, showing improved operational efficiency[85] Shareholder Equity and Capital - Total shareholders' equity was $700.0 million, reflecting an increase of $5.3 million from the previous quarter[4] - Total common equity as of September 30, 2025, was $700,010,000, up from $685,352,000 as of September 30, 2024, an increase of 2.1%[79] - Tangible common equity increased by 1% to $527,301,000 from $521,541,000[64] - Total capital ratio slightly decreased to 15.4% from 15.5%[64] - The Company approved an increase in its share repurchase program from $15 million to $30 million, with a remaining capacity of $26 million as of September 30, 2025[40][42]