Heritage Commerce reports Q1 EPS 31c, consensus 26c

Reports Q1 loan loss provision $32K vs. ($567K) in 1Q22. Tangible book value per share was $7.70 vs. $7.46 at previous quarter end. "We delivered record Q1 earnings and the second best quarterly results in the Company’s history," said CEO Clay Jones. "Q1 earnings have been typically impacted by higher payroll taxes and employee benefits, due to the seasonal peak of these expenses. Profits increased 47% over the first quarter a year ago supported by strong year-over-year growth in net interest income and noninterest income, higher net interest margin and improved efficiency ratio. Total deposits increased by $54.9M from the linked quarter to $4.445B at March 31, 2023. Noninterest-bearing deposits shifted during the quarter to the Bank’s interest-bearing deposits, primarily due to the acceleration of recent rate hikes by the Federal Reserve Bank, prompting customers to seek higher yields. Both the Company and the Bank remain in a strong financial position. Our capital levels and liquidity position are healthy, and the Bank has experienced stable deposit trends. Our prudent approach to risk management has enabled us to navigate recent market volatility in the financial industry".