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Heritage Commerce Corp (HTBK-0.21%) has filed its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reports a net income of $40.5 million for the year, or $0.66 per diluted share, down from $64.4 million, or $1.05 per diluted share, in the previous year.
Net interest income decreased by 11% to $163.6 million, with a net interest margin of 3.28%, primarily due to higher rates on deposits and a decrease in noninterest-bearing deposits.
The company recorded a provision for credit losses on loans of $2.1 million, compared to $749,000 in the previous year, reflecting an increase in loan balances and specific reserves.
Noninterest income was $8.7 million, a 3% decrease from the prior year, mainly due to lower service charges and fees on deposit accounts.
Noninterest expense rose to $113.6 million from $101.1 million, driven by higher salaries, benefits, and other operational costs.
Total assets increased to $5.6 billion, with loans growing by 4% to $3.5 billion and deposits rising by 10% to $4.8 billion.
The allowance for credit losses on loans was $49.0 million, or 1.40% of total loans, with net charge-offs totaling $1.1 million for the year.
The company maintains strong liquidity, with $3.3 billion in available liquidity and borrowing capacity, representing 69% of total deposits.
Heritage Commerce Corp's capital ratios exceed regulatory guidelines, with a total capital ratio of 15.6% and a Tier 1 leverage ratio of 9.6%.
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 annual 10-K report dated March 10, 2025. To report an error, please email earnings@qz.com.