Heritage Commerce Corporation (HTBK) has reported 95.58 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $6.76 million, or $0.18 a share in the quarter, compared with $3.46 million, or $0.10 a share for the same period last year. Revenue during the quarter grew 13.90 percent to $25.12 million from $22.05 million in the previous year period. Net interest income for the quarter rose 17.10 percent over the prior year period to $23.05 million. Non-interest income for the quarter rose 11.91 percent over the last year period to $2.31 million.
Heritage Commerce Corp has made provision of $0.24 million for loan losses during the quarter, compared with a negative provision of $0.30 million in the same period last year.
Net interest margin contracted 29 basis points to 4.10 percent in the quarter from 4.39 percent in the last year period. Efficiency ratio for the quarter improved to 56.37 percent from 75.49 percent in the previous year period. A decline in efficiency ratio indicates a rise in profitability.
"We achieved record year-to-date earnings, along with strong third quarter 2016 earnings of $6.8 million," said Walter Kaczmarek, president and chief executive officer. "Deposits grew by $256.6 million, or 13% year-over-year, and the increased liquidity was invested in lower yielding funds at the Federal Reserve Bank. Asset quality was sound with nonperforming assets to total assets at 0.19%."
Liabilities outpace assets growthTotal assets stood at $2,527.96 million as on Sep. 30, 2016, up 11.75 percent compared with $2,262.21 million on Sep. 30, 2015. On the other hand, total liabilities stood at $2,266.64 million as on Sep. 30, 2016, up 12.53 percent from $2,014.23 million on Sep. 30, 2015. Loans outpace deposit growthNet loans stood at $1,430.14 million as on Sep. 30, 2016, up 8.87 percent compared with $1,313.67 million on Sep. 30, 2015. Deposits stood at $2,218.63 million as on Sep. 30, 2016, up 13.08 percent compared with $1,962.02 million on Sep. 30, 2015. Noninterest-bearing deposit liabilities were $889.08 million or 40.07 percent of total deposits on Sep. 30, 2016, compared with $758.44 million or 38.66 percent of total deposits on Sep. 30, 2015.
Investments stood at $572.40 million as on Sep. 30, 2016, up 55.37 percent or $203.99 million from year-ago. Shareholders equity stood at $261.32 million as on Sep. 30, 2016, up 5.38 percent or $13.34 million from year-ago.
Return on average assets moved up 41 basis points to 1.11 percent in the quarter from 0.70 percent in the last year period. At the same time, return on average equity increased 397 basis points to 10.38 percent in the quarter from 6.41 percent in the last year period.
Nonperforming assets moved down 18.79 percent or $1.11 million to $4.79 million on Sep. 30, 2016 from $5.90 million on Sep. 30, 2015. Meanwhile, nonperforming assets to total assets was 0.19 percent in the quarter, down from 0.26 percent in the last year period.
Book value per share was $6.89 for the quarter, down 3.23 percent or $0.23 compared to $7.12 for the same period last year.
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