Heritage Commerce Corp. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2011; Announces Net Charge-Offs for the Fourth Quarter of 2011
January 27, 2012 at 05:02 am IST
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Heritage Commerce Corp. announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2011. For the quarter, the company reported interest income of $13,010,000 compared to $13,168,000 a year ago. Net interest income before provision for loan losses was $11,788,000 compared to $10,947,000 a year ago. Income before income taxes was $3,121,000 compared to $2,211,000 a year ago. Net income allocable to common shareholders was $2,286,000 or $0.07 per basic and diluted share compared to $1,099,000 or $0.03 per basic and diluted share a year ago. Annualized return on average equity was 5.83% compared to 3.65% a year ago. Annualized return on average tangible equity was 5.90% compared to 3.71% a year ago. Annualized return on average assets was 0.86% compared to 0.50% a year ago. Annualized return on average tangible assets was 0.86% compared to 0.50% a year ago.
For the year, the company reported interest income of $52,031,000 compared to $55,087,000 a year ago. Net interest income before provision for loan losses was $46,156,000 compared to $44,575,000 a year ago. Income before income taxes was $10,537,000 compared to loss before income taxes of $61,623,000 a year ago. Net income allocable to common shareholders was $9,038,000 or $0.28 per basic and diluted share compared to net loss allocable to common shareholders of $58,255,000 or $3.64 per basic and diluted share a year ago. Book value per share was $5.30 compared to $4.73 a year ago. Annualized return on average equity was 6.02% compared to annualized loss on average equity of 30.82% a year ago. Annualized return on average tangible equity was 6.11% compared to annualized loss on average tangible equity of 35.66% a year ago. Annualized return on average assets was 0.89% compared to annualized loss on average assets of 4.17% a year ago. Annualized return on average tangible assets was 0.89% compared to annualized loss on average tangible assets of 4.25% a year ago. The net interest income increased primarily due to an increase in the average balance of investment securities, and a decrease in the average balance and rates paid on interest-bearing liabilities, partially offset by a decrease in the average balance of loans.
For the quarter, the company reported net charge-offs of $1,579,000 compared to $1,136,000 a year ago.
Heritage Commerce Corp is a bank holding company for its wholly owned subsidiary, Heritage Bank of Commerce (the Bank). The Bank offers a full range of commercial banking services to small and medium-sized businesses and their owners, managers and employees. Its lending activities are diversified and include commercial, real estate, construction and land development, consumer and small business administration (SBA) guaranteed loans. The Bank offers a wide range of deposit products for business banking and retail markets. It offers a multitude of other products and services to complement its lending and deposit services. In addition, through its subsidiary, CSNK Working Capital Finance Corp, it provides factoring financing throughout the United States. The Companyâs operations are located in the general San Francisco Bay Area of California in the counties of Alameda, Contra Costa, Marin, San Benito, San Francisco, San Mateo, and Santa Clara.
Heritage Commerce Corp. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2011; Announces Net Charge-Offs for the Fourth Quarter of 2011