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Heritage Commerce (HTBK) Reports Q2 Earnings: What Key Metrics Have to Say

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Heritage Commerce (HTBK - Free Report) reported $48.37 million in revenue for the quarter ended June 2023, representing a year-over-year increase of 10%. EPS of $0.27 for the same period compares to $0.24 a year ago.

The reported revenue represents a surprise of -5.21% over the Zacks Consensus Estimate of $51.03 million. With the consensus EPS estimate being $0.29, the EPS surprise was -6.90%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Heritage Commerce performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Interest Margin [%]: 3.76% versus the three-analyst average estimate of 3.97%.
  • Efficiency Ratio: 51.67% versus the three-analyst average estimate of 49.27%.
  • Total Non-Performing - Loan: $5.54 million versus the two-analyst average estimate of $2.49 million.
  • Total Non-Performing - Assets: $5.54 million versus $2.49 million estimated by two analysts on average.
  • Average Balances-Interest earning assets: $4.95 billion compared to the $4.88 billion average estimate based on two analysts.
  • Net Interest Income: $46.29 million versus the three-analyst average estimate of $48.27 million.
  • Total Non Interest Income: $2.07 million versus the three-analyst average estimate of $2.79 million.
  • Gain on sale of SBA loans: $0.20 million versus the two-analyst average estimate of $0.09 million.
View all Key Company Metrics for Heritage Commerce here>>>

Shares of Heritage Commerce have returned +17.5% over the past month versus the Zacks S&P 500 composite's +5.6% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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