Heritage Commerce Corp Reports Third Quarter and First Nine Months of 2025 Financial Results

Core Insights - Heritage Commerce Corp reported strong financial results for Q3 2025, with net income of $14.7 million and diluted EPS of $0.24, reflecting significant growth compared to previous quarters and the same period last year [2][6][7]. Financial Performance - Net income for Q3 2025 was $14.7 million, a 130% increase from $6.4 million in Q2 2025 and a 40% increase from $10.5 million in Q3 2024 [6][7][8]. - Total revenue reached $50.0 million, up 5% from $47.8 million in Q2 2025 and up 19% from $42.2 million in Q3 2024 [11][8]. - Pre-Provision Net Revenue (PPNR) was $21.0 million, a 44% increase from $14.6 million in Q3 2024 [8][18]. Balance Sheet Highlights - Total assets increased by 3% to $5.6 billion at September 30, 2025, compared to $5.5 billion at June 30, 2025 [28]. - Loans held-for-investment (HFI) rose to $3.6 billion, an increase of 1% from the previous quarter and 5% year-over-year [33]. - Total deposits increased by 3% to $4.8 billion, with a loan-to-deposit ratio of 74.99% [35]. Asset Quality - Nonperforming assets (NPAs) decreased to $3.7 million, down from $6.2 million in Q2 2025 and $7.2 million in Q3 2024 [40]. - The allowance for credit losses on loans was $49.4 million, representing 1.38% of total loans, consistent with the previous quarter [39]. Capital Management - Total shareholders' equity was $700.0 million, an increase from $694.7 million at June 30, 2025 [36]. - The Company announced an increase in its share repurchase program, doubling the authorization from $15 million to $30 million [42]. CEO Commentary - The CEO highlighted the solid financial foundation of the Company, emphasizing high capital reserves, strong liquidity, and improved asset quality, which positions the Company for continued growth and market share expansion [3].