NASDAQ$HTBK
Heritage Commerce Corp · Q4 2023 earnings
Q4 2023 earnings · · Investor relations
Briefing
Net income was $13.3 million, or $0.22 per average diluted common share.
Heritage Commerce Corp reported a net income of $13.3 million for Q4 2023, with diluted earnings per share of $0.22. The company's loan growth resulted in an increase of 2% year-over-year and from the prior quarter, while client deposits remained stable.
- Net income for Q4 2023 was $13.3 million, or $0.22 per diluted share, compared to $20.8 million, or $0.34 per diluted share, for Q4 2022.
- Loan growth increased 2% year-over-year and from the prior quarter.
- Total deposits were relatively flat at $4.38 billion at December 31, 2023, compared to $4.39 billion at December 31, 2022.
- Total liquidity and borrowing capacity was $2.87 billion at December 31, 2023.
Headline financials
Revenue & EPS history
Heritage Commerce · Revenue · Quarterly
$44.2M
Forward guidance
Company anticipates stabilization in their cost of funds following the recent Fed guidance on expected rate reductions in 2024.
Tailwinds
- Anticipate stabilization in our cost of funds following the recent Fed guidance on expected rate reductions in 2024.
- Focus remains on orderly organic growth.
- Avoiding borrowed funds and brokered deposits.
- Local community retail and commercial deposit relationships serve as a stable and lower-cost funding source, reflecting our disciplined management approach.
- Have a strong balance sheet, evidenced by robust capital, ample liquidity, and a diversified loan portfolio.
Headwinds
- The pre-tax unrealized loss on the securities available-for-sale portfolio was ($9.9) million, or ($7.1) million net of taxes, which was 1.1% of total shareholders’ equity at December 31, 2023
- The pre-tax unrecognized loss on the securities held-to-maturity portfolio was ($86.5) million, or ($60.9) million net of taxes, which was 9.0% of total shareholders’ equity at December 31, 2023
- Total noninterest income decreased (30%) to $1.9 million for the fourth quarter of 2023, compared to $2.8 million for the fourth quarter of 2022
- Net interest income decreased (18%) to $42.3 million for the fourth quarter of 2023, compared to $51.7 million for the fourth quarter of 2022.
- Total deposits decreased ($197.0) million, or (4%) from $4.58 billion at September 30, 2023, as a result of deposit outflows from clients operating expenses, tax payments, one-time capital events, profit distributions, and to a lesser extent clients moving deposits to outside investment alternatives.
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 Q4 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
| Quarter | Report date | Reaction (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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