Heritage Commerce Corp. announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2013. For the quarter, the company's interest income was $13.6 million compared with $12.96 million a year ago. Net interest income before provision for loan losses was $13.0 million compared with $12.2 million a year ago. Net interest income after provision for loan losses was $13.1 million compared with $11.5 million a year ago. Income before income taxes was $4.8 million compared with $3.8 million a year ago. Net income was $3.4 million compared with $2.7 million a year ago. Net income available to common shareholders was $3.4 million or $0.10 per basic and diluted share compared with $2.7 million or $0.08 per basic and diluted share a year ago. As on December 31, 2013, the company's book value per share was $5.84 and tangible book value per share was $5.78. Annualized return on average equity was 7.74% compared with 6.25% a year ago. Annualized return on average tangible equity was 7.81% compared with 6.32% a year ago. Annualized return on average assets was 0.89% compared with 0.75% a year ago. Annualized return on average tangible assets was 0.89% compared with 0.75% a year ago.

For the year, the company's interest income was $52.8 million compared with $52.6 million a year ago. Net interest income before provision for loan losses was $50.2 million compared with $48.4 million a year ago. Net interest income after provision for loan losses was $51.0 million compared with $45.6 million a year ago. The increase in net interest income was driven primarily by higher average loan balances and a lower cost of funds. Income before income taxes was $16.5 million compared with $14.2 million a year ago. Net income was $11.5 million compared with $9.9 million a year ago. Net income available to common shareholders was $11.5 million or $0.36 per basic and diluted share compared with $8.7 million or $0.27 per basic and diluted share a year ago. Annualized return on average equity was 6.77% compared with 5.75% a year ago. Annualized return on average tangible equity was 6.84% compared with 5.83% a year ago. Annualized return on average assets was 0.81% compared with 0.73% a year ago. Annualized return on average tangible assets was 0.81% compared with 0.73% a year ago.

The company announced net charge-offs of $166,000 for the fourth quarter of 2013, compared to net charge-offs of $766,000 for the fourth quarter of 2012.