Here's What Key Metrics Tell Us About Heritage Commerce (HTBK) Q2 Earnings

Core Viewpoint - Heritage Commerce (HTBK) reported a decline in revenue and earnings for the quarter ended June 2024, indicating potential challenges in financial performance [1]. Financial Performance - Revenue for the quarter was $41.73 million, down 13.7% year-over-year, and below the Zacks Consensus Estimate of $43.35 million by 3.73% [1]. - Earnings per share (EPS) were $0.15, a decrease from $0.27 a year ago, and fell short of the consensus EPS estimate of $0.19 by 21.05% [1]. Key Financial Metrics - Efficiency Ratio was reported at 67.6%, higher than the average estimate of 61.4% based on three analysts [3]. - Net Interest Margin was 3.3%, slightly below the average estimate of 3.4% [3]. - Total Non-Performing Loans stood at $6.03 million, better than the average estimate of $8.24 million [3]. - Average Balances of Interest-Earning Assets were $4.87 billion, below the average estimate of $5.46 billion [3]. - Total Non-Performing Assets were also $6.03 million, again better than the average estimate of $8.24 million [3]. - Net Interest Income was $39.46 million, below the average estimate of $41.19 million [3]. - Total Non-Interest Income was $2.28 million, slightly above the average estimate of $2.16 million [3]. - Gain on Sale of SBA Loans was $0.08 million, below the average estimate of $0.19 million [3]. - Net Interest Income (FTE) was $39.52 million, below the average estimate of $41.11 million [3]. Stock Performance - Shares of Heritage Commerce have increased by 25.8% over the past month, contrasting with a -0.3% change in the Zacks S&P 500 composite [3]. - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3].