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Heritage Commerce Corp (HTBK-1.73%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in net income to $10.5 million from $15.8 million in the same quarter the previous year. The decrease is attributed to higher interest expenses and lower net interest income.
Net interest income for the quarter was $39.9 million, down from $45.4 million in the previous year. The decline is due to an increase in the average cost of deposits and a decrease in average interest-earning assets.
The company's total assets increased to $5.6 billion, compared to $5.4 billion in the previous year, driven by growth in client deposits.
Total deposits increased to $4.7 billion from $4.6 billion in the previous year, with a notable shift from noninterest-bearing to interest-bearing deposits.
The company reported a provision for credit losses on loans of $153,000 for the quarter, compared to $168,000 in the previous year.
Noninterest income remained stable at $2.2 million for the quarter. However, for the nine months ended September 30, 2024, noninterest income decreased by 7% to $6.6 million.
Noninterest expense increased to $27.6 million for the quarter, up from $25.2 million in the previous year, primarily due to higher salaries and professional fees.
The company's liquidity position was strong, with total liquidity of $3.2 billion, covering 66% of total deposits.
Heritage Commerce Corp's capital ratios exceeded regulatory guidelines, with a total capital ratio of 15.6% and a Tier 1 capital ratio of 13.4%.
The filing also discusses the company's ongoing legal proceedings, which include three employment-related actions, and notes that the outcomes are not expected to have a material adverse effect on the company's financial condition.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Heritage Commerce Corp quarterly 10-Q report dated November 8, 2024. To report an error, please email earnings@qz.com.