Heritage Commerce Corp (HTBK) has reported 63.12 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $7.22 million, or $0.19 a share in the quarter, compared with $4.42 million, or $0.12 a share for the same period last year.
Revenue during the quarter grew 5.40 percent to $25.92 million from $24.60 million in the previous year period. Net interest income for the quarter rose 4.45 percent over the prior year period to $23.12 million. Non-interest income for the quarter rose 7.42 percent over the last year period to $3.04 million.
Heritage Commerce Corp has made provision of $0.24 million for loan losses during the quarter, down 35.31 percent from $0.37 million in the same period last year.
Net interest margin contracted 22 basis points to 3.91 percent in the quarter from 4.13 percent in the last year period. Efficiency ratio for the quarter improved to 54.57 percent from 69.54 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
“We delivered another solid performance in 2016 with earnings growing by 66% to a record $27.4 million. Our fourth quarter 2016 results were also strong with net income up 63% to $7.2 million, compared to the fourth quarter of 2015. Robust deposit growth and continuing solid credit quality were highlights of our 2016 financial results,” said Walter Kaczmarek, President and Chief Executive Officer. “Nonperforming assets were down 51% year-over-year and down 31% on a linked quarter basis, reflecting the strong economy in the San Francisco Bay Area.”
Liabilities outpace assets growth
Total assets stood at $2,570.88 million as on Dec. 31, 2016, up 8.86 percent compared with $2,361.58 million on Dec. 31, 2015. On the other hand, total liabilities stood at $2,311.03 million as on Dec. 31, 2016, up 9.21 percent from $2,116.14 million on Dec. 31, 2015.
Loans outpace deposit growth
et loans stood at $1,483.52 million as on Dec. 31, 2016, up 10.73 percent compared with $1,339.79 million on Dec. 31, 2015. Deposits stood at $2,262.14 million as on Dec. 31, 2016, up 9.66 percent compared with $2,062.78 million on Dec. 31, 2015. Noninterest-bearing deposit liabilities were $917.19 million or 40.55 percent of total deposits on Dec. 31, 2016, compared with $821.40 million or 39.82 percent of total deposits on Dec. 31, 2015.
Investments stood at $630.60 million as on Dec. 31, 2016, up 27.55 percent or $136.21 million from year-ago. Shareholders equity stood at $259.85 million as on Dec. 31, 2016, up 5.87 percent or $14.41 million from year-ago.
Return on average assets moved up 38 basis points to 1.12 percent in the quarter from 0.74 percent in the last year period. At the same time, return on average equity increased 390 basis points to 11.01 percent in the quarter from 7.11 percent in the last year period.
Nonperforming assets moved down 51.23 percent or $3.45 million to $3.29 million on Dec. 31, 2016 from $6.74 million on Dec. 31, 2015. Meanwhile, nonperforming assets to total assets was 0.13 percent in the quarter, down from 0.29 percent in the last year period.
Book value per share was $6.85 for the quarter, down 2.56 percent or $0.18 compared to $7.03 for the same period last year.
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