Heritage Commerce Corp (HTBK) has reported 7.08 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $6.54 million, or $0.17 a share in the quarter, compared with $6.11 million, or $0.16 a share for the same period last year. Revenue during the quarter grew 5.23 percent to $25.80 million from $24.52 million in the previous year period. Net interest income for the quarter rose 6.82 percent over the prior year period to $23.83 million. Non-interest income for the quarter fell 12.20 percent over the last year period to $2.30 million.
Heritage Commerce Corp has made provision of $0.32 million for loan losses during the quarter, down 19.95 percent from $0.40 million in the same period last year.
Net interest margin contracted 16 basis points to 4.06 percent in the quarter from 4.22 percent in the last year period. Efficiency ratio for the quarter improved to 58.68 percent from 58.93 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
“We continue to build momentum with strong financial results for the first quarter of 2017. We generated 15% growth in deposits over the prior year, and a net interest margin of 4.06%, a return on average tangible assets of 1.05%, and a return on average tangible equity of 12.69% for the first quarter of 2017,” said Walter Kaczmarek, president and chief executive officer.
Deposits stood at $2,330.09 million as on Mar. 31, 2017, up 14.85 percent compared with $2,028.74 million on Mar. 31, 2016.
Noninterest-bearing deposit liabilities were $917.04 million or 39.36 percent of total deposits on Mar. 31, 2017, compared with $768.52 million or 37.88 percent of total deposits on Mar. 31, 2016.
Investments stood at $682.97 million as on Mar. 31, 2017, up 7.77 percent or $49.27 million from year-ago. Shareholders equity was at $263.90 million as on Mar. 31, 2017.
Return on average assets moved down 2 basis points to 1.03 percent in the quarter from 1.05 percent in the last year period. At the same time, return on average equity increased 28 basis points to 10.15 percent in the quarter from 9.87 percent in the last year period.
Nonperforming assets moved up 22.32 percent or $1.02 million to $5.59 million on Mar. 31, 2017 from $4.57 million on Mar. 31, 2016. Meanwhile, nonperforming assets to total assets was 0.21 percent in the quarter, up from 0.20 percent in the last year period.
Book value per share was $6.95 for the quarter, down 3.74 percent or $0.27 compared to $7.22 for the same period last year.
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