Bank holding firm Heritage Commerce posts surge in Q3 net income on improved asset quality; doubles buyback

Heritage Commerce

23/10/2025 22:35

Overview

Heritage Commerce Q3 net income rises 130% yr/yr, driven by improved asset quality

Company expands share repurchase program to $30 mln from $15 mln

Q3 revenue grows 19% yr/yr, reflecting disciplined expense management and positive trends

Outlook

Company did not provide specific future guidance in its press release

Result Drivers

LOAN AND DEPOSIT GROWTH - Co reports loan growth of 1% and deposit growth of 3% over the linked qtr, contributing to revenue increase

NET INTEREST MARGIN EXPANSION - Higher average balances of loans and overnight funds, higher average yield on securities, and lower average cost of deposits drove a 6 basis point increase in FTE net interest margin to 3.60%

ASSET QUALITY IMPROVEMENT - Co reports improvement in asset quality with NPAs to total assets decreasing to 0.07% from 0.11% in the previous quarter

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Net Income
$14.70 mln
Q3 Net Interest Income
$46.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Heritage Commerce Corp is $11.00, about 9.7% above its October 21 closing price of $9.93

The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNX7C3Kj8

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)