Heritage Commerce Full Year 2024 Earnings: Revenues Beat Expectations, EPS In Line

Heritage Commerce (NASDAQ:HTBK) Full Year 2024 Results

Key Financial Results

• Revenue: US$170.3m (down 11% from FY 2023).
• Net income: US$40.5m (down 37% from FY 2023).
• Profit margin: 24% (down from 34% in FY 2023). The decrease in margin was primarily driven by lower revenue.
• EPS: US$0.66 (down from US$1.06 in FY 2023).

HTBK Banking Performance Indicators

• Net interest margin (NIM): 3.28% (down from 3.70% in FY 2023).
• Cost-to-income ratio: 65.9% (up from 52.6% in FY 2023).
• Non-performing loans: 0.22% (down from 0.23% in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Heritage Commerce Revenues Beat Expectations

Revenue exceeded analyst estimates by 1.7%. Earnings per share (EPS) was mostly in line with analyst estimates.

Looking ahead, revenue is forecast to grow 8.8% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Banks industry in the US.

Performance of the American Banks industry.

The company's shares are down 8.0% from a week ago.

Balance Sheet Analysis

Just as investors must consider earnings, it is also important to take into account the strength of a company's balance sheet. See our latest analysis on Heritage Commerce's balance sheet health.

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