Heritage Commerce reports jump in Q2 adjusted net income

Heritage Commerce

24/07/2025 22:19

Overview

Heritage Commerce Q2 adjusted net income of $13 mln rises 40% yr/yr

Q2 Adjusted EPS of $0.21, up 40% yoy

Reported net income for Q2 down 31% yr/yr due to legal settlement charges

Company's deposits decline 1% due to seasonal outflows, loan growth strong

Outlook

Company expects positive trends in loan growth and net interest margin

Result Drivers

LOAN GROWTH - Co reports diversified loan growth across portfolios, contributing to positive financial trends

NET INTEREST MARGIN EXPANSION - Increase in net interest margin driven by higher average yields and balances of loans and securities

SEASONAL DEPOSIT DECLINE - Deposits fell 1% due to typical seasonal outflows

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Net Income
$6.40 mln
Q2 Net Interest Income
$44.80 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "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 7.7% above its July 23 closing price of $10.15

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

Press Release: ID:nGNXbHd1Mp

(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.)