Heritage Commerce Corp reported net income of $11.6 million, or $0.19 per average diluted common share, for the first quarter of 2025. This represents a 9% increase in profitability from the prior quarter and a 14% increase compared to the first quarter of 2024.
The company achieved an improved fully tax equivalent (FTE) net interest margin of 3.39% for the quarter, up from 3.32% in the fourth quarter of 2024, primarily due to lower rates paid on customer deposits and higher average yields on securities and loans. Net interest income increased 10% year-over-year to $43.4 million.
Asset quality showed improvement, with nonperforming assets (NPAs) decreasing to $6.3 million at March 31, 2025, from $7.7 million at December 31, 2024. The allowance for credit losses on loans stood at $48.3 million, representing 765% coverage of total nonperforming loans.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.