Heritage Commerce Corp (NASDAQ: HTBK) has reported its financial results for the fourth quarter and full year ended December 31, 2025. The company's net income for the fourth quarter was $15.1 million, with diluted earnings per share (EPS) at $0.25. However, the adjusted net income for the same period was $17.2 million, and the adjusted EPS was $0.28, both marking a significant increase over the previous period.
In terms of return on average assets (ROAA), Heritage Commerce Corp reported a 1.04% ROAA for the fourth quarter, which increased to 1.18% when adjusted. Similarly, the return on average tangible common equity (ROATCE) was reported at 11.29% and adjusted to 12.83% for the same period.
For the full year 2025, the company's reported net income was $47.8 million, with reported EPS at $0.78. However, the adjusted net income for the full year stood at $56.4 million, with adjusted EPS at $0.91, reflecting a substantial increase over the previous period.
The company's total revenue for the full year 2025 was $197.5 million, marking a 15% increase over the previous year. The fully tax equivalent (FTE) net interest margin showed a significant increase, rising by 31 basis points from 3.25% to 3.56%.
Furthermore, Heritage Commerce Corp reported growth in its loans held-for-investment (HFI) and total deposits. The HFI loans increased by $161.1 million, or 5%, while total deposits grew by $83.1 million, or 2%, compared to the previous period.
The company also demonstrated improvements in asset quality, with nonperforming assets (NPAs) to total assets decreasing to 0.05% from 0.14% in the previous year.
In terms of efficiency, the adjusted efficiency ratio for the full year 2025 decreased by 10% from the previous period, while the adjusted ROAA and ROATCE increased by 33% and 34%, respectively.
Following these announcements, the company's shares moved 0.23%, and are now trading at a price of $12.85. If you want to know more, read the company's complete 8-K report here.
