NASDAQ$HTBK

Heritage Commerce Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Net income decreased due to increased cost of deposits, but year-to-date net income increased due to steady deposit growth, moderate loan demand, and higher net interest income.

Heritage Commerce Corp reported a net income of $15.8 million for Q3 2023, a decrease compared to both Q3 2022 and Q2 2023. Despite the quarterly decrease, year-to-date net income increased by 12% compared to the first nine months of 2022, driven by deposit growth, loan demand and net interest income. The net interest margin contracted during the third quarter due to deposit pricing.

  • Net income for the third quarter of 2023 was $15.8 million, or $0.26 per diluted share.
  • Net interest income decreased 6% to $45.4 million for the third quarter of 2023 compared to the same period in 2022.
  • Total deposits increased $74.7 million, or 2%, to $4.575 billion at September 30, 2023, compared to June 30, 2023.
  • The Company’s total liquidity and borrowing capacity was $3.189 billion, all of which remained available at September 30, 2023.

Headline financials

Total Revenue

$47.6M

Previous: $50.8M-6.4%
EPS (adj)

$0.26

Previous: $0.30-13.3%
Efficiency Ratio

52.9%

Previous: 47.0%+12.5%
Net Interest Margin (FTE)

3.6%

Previous: 3.7%-4.3%
NPAs to Total Assets

0.1%

No prior period
NPLs to Total Loans

0.2%

No prior period
Total Capital Ratio

15.6%

No prior period
Tier 1 Leverage Ratio

9.6%

No prior period
Capital Expenditures

-$1.23M

Previous: -$639K-93.1%
Free Cash Flow

$76.4M

Previous: $42.1M+81.5%
Net Income

$15.8M

Previous: $18.1M-12.6%
Operating Income

$23.6M

Previous: $42.8M-44.9%
Gross Profit

$47.4M

Previous: $49.8M-4.8%
Cash & Equivalents

$646M

Previous: $682M-5.3%
Total Assets

$5.4B

Previous: $5.43B-0.5%

Revenue & EPS history

Heritage Commerce · Revenue · Quarterly

$47.6M

Q3 2023-6.4%vs Q3 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

This document does not contain forward guidance.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.9%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+1.3%

Avg return

30 days after

57%

37 / 65 earnings

Positive

+12.7%

Q1 2023

Best reaction

-6.6%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q4 2025-3.8%-6.3%-0.7%
Q3 2025+0.3%-2.1%+3.6%
Q2 2025-3.1%-6.0%+2.0%
Q1 2025-0.5%+0.0%-1.5%
Q4 2024+3.8%+4.7%+14.3%
Q3 2024-2.1%+1.8%+12.4%
Q2 2024+4.1%+2.5%-2.0%
Q1 2024-4.3%-5.0%-2.5%
Q4 2023-5.0%-4.6%-14.4%
Q3 2023+3.4%+2.5%+7.1%
Q2 2023-1.9%-2.3%-12.2%
Q1 2023+12.7%-1.7%+2.1%
Q4 2022-4.9%-3.4%-2.2%
Q3 2022+8.4%+8.4%+10.2%
Q2 2022+1.1%-0.3%-0.6%
Q1 2022-1.2%-0.4%+0.1%
Q4 2021+1.2%+0.6%-2.1%
Q3 2021+4.2%+4.5%-3.1%
Q2 2021-1.4%-1.6%+2.4%
Q1 2021+2.8%+1.3%-0.5%
Q4 2020-3.5%-3.4%+4.5%
Q3 2020+8.4%-0.5%+17.0%
Q2 2020+4.3%-1.7%-2.7%
Q1 2020-0.3%+14.5%-2.8%
Q4 2019-4.0%-6.6%-6.1%
Q3 2019-2.1%+2.7%+6.0%
Q2 2019+0.6%+0.8%-8.0%
Q1 2019-5.1%-2.4%-4.6%
Q4 2018+6.5%+3.4%+12.6%
Q3 2018+6.4%+7.3%+3.9%
Q2 2018+1.4%-9.2%-5.3%
Q1 2018+0.6%+0.3%+1.6%
Q4 2017-1.1%-1.2%+1.5%
Q3 2017+4.2%+5.1%+4.4%
Q2 2017-1.5%+0.1%-3.1%
Q1 2017-3.3%-1.9%-8.5%
Q4 2016-0.1%-2.8%-0.3%
Q3 2016+1.8%+0.4%+15.6%
Q2 2016-1.5%-1.9%+11.8%
Q1 2016-1.4%
Q4 2015+2.4%
Q3 2015-6.6%
Q2 2015+1.5%
Q1 2015+0.7%
Q4 2014-0.5%
Q3 2014+0.5%
Q2 2014+0.6%
Q1 2014+0.9%
Q4 2013-2.8%
Q3 2013+0.5%
Q2 2013-0.7%
Q1 2013-1.3%
Q4 2012+2.0%
Q3 2012-1.7%
Q2 2012+1.8%
Q1 2011-2.7%
Q1 2012+5.0%
Q4 2009+2.8%
Q4 2011+2.8%
Q4 2010+2.8%
Q3 2011+8.0%
Q3 2010+8.0%
Q2 2010+3.2%
Q2 2011+3.2%
Q1 2010+1.0%

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